How Do Dividends Work?
Under Delaware law the board of directors may declare a dividend; in Germany the shareholders' meeting decides how the balance sheet profit is used.
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1.Is a dividend a promise?
Under Delaware law the board of directors may declare a dividend; in Germany the shareholders' meeting decides how the balance sheet profit is used.
2.What does "per share" mean for the amount of a dividend?
Per share means every share gets the same amount, so 100 shares collect 100 times as much as one.
3.What are the four dates in order?
The order decides who gets the cash.
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Sources (7)
- Delaware General Corporation Law, Title 8, Chapter 1, Sections 170 and 173 (Dividends)
- § 174 Aktiengesetz (AktG), Beschluss
- SEC Release No. 34-99881 (1. April 2024): NYSE Arca, Notice of Filing of Proposed Rule Change to Amend Rule 7.4-E (Ex-Dividend or Ex-Right Dates)
- Elton, E. J., Gruber, M. J., Blake, C. R.: Marginal Stockholder Tax Effects and Ex-Dividend-Day Price Behavior: Evidence from Taxable versus Non-taxable Closed-End Funds (Arbeitspapier
- Eigene Rechnung: 200 Aktien zu 40 Dollar, Dividende 0,50 je Aktie (Uebungsaufgabe)
- OpenStax: Principles of Accounting / Financial Accounting
- Eigene Berechnung (synthetisches Termin-Beispiel Nora und Omar)
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