A liquidating dividend is usually paid when a company is going out of business or reducing its operations.

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A liquidating dividend is typically paid when a company is closing down or scaling back its operations. This type of dividend is paid to shareholders from the company's remaining assets, after all debts and other obligations have been settled. It is different from a regular dividend, which is paid out of the company's profits on a regular basis to shareholders.

A Liquidating Dividend Is Usually Paid When a Company Is