A dividend based on paid-in capital is termed a liquidating dividend.

Name: A dividend based on paid-in capital is termed a liquidating dividend.
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A liquidating dividend is a type of dividend that is paid to shareholders from a company's capital or reserves rather than from its earnings. It is typically paid when a company is liquidating or distributing its assets to shareholders. Since it is paid out of capital, it is also known as a liquidating distribution or return of capital.

A Dividend Based on Paid-In Capital Is Termed a Liquidating