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BigBadWolf

09/13/23 4:06 PM

#61842 RE: BigBadWolf #61841

How are dividends deposited?
The most common type of dividend. Companies generally pay these in cash directly into the shareholder's brokerage account. Stock dividends. Instead of paying cash, companies can also pay investors with additional shares of stock.Jun 27, 2023


What must a shareholder do to compel distribution of a dividend?
A shareholder can obtain an injunction compelling payment of a reasonable dividend where the corporation is withholding dividends in bad faith for a fraudulent or abusive purpose. Once a dividend has been declared by the corporation, it is a debt of the corporation, and shareholders may bring suit to compel payment.


A spinoff is created when a company forms some part of its operations into a separate entity and distributes shares in it tax free to shareholders of the parent company. The number of shares that a parent company shareholder receives is based on the number they own in the parent company.

When a spinoff's shares start trading on a stock exchange, the value of the parent company's stock may drop by the value of the new company's stock. This is due to the fact that the parent company stock no longer reflects the value of the unit that was spun off. Parent company shareholders shouldn't be concerned by this price change because they own the spinoff's shares as well.


What happens to shareholders in a spinoff?
A corporation creates a spinoff by distributing 100% of its ownership interest in that business unit as shares of stock to existing shareholders. It can also offer its existing shareholders a discount to exchange their shares in the parent company for shares of the spinoff.