Dividend payments that are the result of liquidation of assets are known as ________ and are taxed as capital gains.

Name: Dividend payments that are the result of liquidation of assets are known as ________ and are taxed as capital gains.
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Dividend payments that result from liquidation of assets are known as return of capital and are taxed as capital gains. This is because the investor is receiving a portion of their original investment back, rather than a distribution of profits.

Dividend Payments That Are the Result of Liquidation of Assets