When a portion of stockholders' original investment is returned in the form of a dividend,it is called a

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A liquidating dividend is a portion of the stockholders' original investment that is returned to them when a company goes out of business, sells off its assets, or restructures. This is different from a compensating dividend, which is a dividend paid when a company's earnings exceed its expectations, or a property dividend, which is a dividend paid out in the form of company property rather than cash. Equity dividend is not a commonly used term in finance.

When a Portion of Stockholders' Original Investment Is Returned in the Form