Meaning of “equalising dividends"?

2012-03-18 9:10 am
I've come across this sentence: "The Board may set aside such sums as it thinks fit as a reserve which shall be applicable for equalising dividends or ....."

What's the meaning of "equalising dividends"?

回答 (1)

2012-03-18 4:00 pm
✔ 最佳答案
Definition of 'Equalizing Dividend'
An additional dividend paid to eligible stockholders when their divided income is reduced due to a change the board of directors makes to the dividend payment schedule.

Investopedia explains 'Equalizing Dividend'
Equalizing dividends are paid to shareholders to compensate them for any dividend income lost from the change.


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