Dividend at Legal Glossary

What is it? A portion of profits distributed by a corporation to its shareholders based on the type of stock and number of shares owned. Dividends are usually paid in cash, though they may also be paid in the form of additional shares of stock or other property. The amount of a dividend is established by the corporations board of directors; however, state laws often restrict a corporations ability to declare dividends by requiring a minimum level of profits or assets before the dividend can be approved.

Law Definition Added By: Elijah

Send To Friends!

If you'd like to send the Dividend definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Dividend. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Legal Terms:

Law Terms final beneficiary is The person or institution designated to receive trust property upon the death of a life beneficiary. For example, Jim creates a trust through which his wife Jane receives income for the duration of her life. Their daughter, the final beneficiary, receives the trust principal after Janes death.

Law Terms lease option is A contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance. A lease option is often a good arrangement for a potential home buyer because it lets him move into a house he may buy without having to come up with a down payment or financing at that time.

Law Terms summary judgment is A final decision by a judge that resolves a lawsuit in favor of one of the parties. A motion for summary judgment is made after discovery is completed but before the case goes to trial. The party making the motion marshals all the evidence in its favor, compares it to the other sides evidence, and argues that a reasonable jury looking at the same evidence could only decide the case one way--for the moving party. If the judge agrees, then a trial would be unnecessary and the judge enters judgment for the moving party.

Law Terms res nova is Latin for a new thing, used by courts to describe an issue of law or case that has not previously been decided.

Law Terms unconscionability is A sellers taking advantage of a buyer due to their unequal bargaining positions, perhaps because of the buyers recent trauma, physical infirmity, ignorance, inability to read or inability to understand the language. The unfairness must be so severe that it is shocking to the average person. It usually includes the absence of any meaningful choice on the part of the buyer and contract terms so one-sided that they unreasonably favor the seller. A contract will be terminated if the buyer can prove unconscionability.