Asyst Technologies, Inc. (fka ASYTQ)

[trader53]

liquidating dividend >


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liquidating dividend

A pro rata distribution of cash or property to stockholders as part of the dissolution of a business. For example, a firm may be liquidated because the officers believe its stock price does not adequately reflect the value of its assets. All debts and other obligations usually must be satisfied before issuance of a final liquidating dividend.


http://financial-dictionary.thefreedictionary.com/Liquidating+Dividends

Why Would a Company Use Liquidating Dividends?

A corporation issues these dividends if it plans to terminate its business or if it plans to merge with another corporation under a new name.

Liquidation Defined
When a corporation decides to shut down, it liquidates its assets. This means that the business sells off not just any inventory it may have, but its tools of production, building and any other assets it may have. The purpose of this exercise is to gain the money necessary to pay off its debts and then to distribute the remainder to its shareholders through a liquidating dividend. Often a liquidation is overseen by a receiver, or a chosen representative of the shareholders, who oversees the process to ensure that it runs smoothly and that the corporation maximizes the return from the sale of its assets.


http://smallbusiness.chron.com/would-company-use-liquidating-dividends-14669.html








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