What Is a Deemed Dividend?

Answer

A deemed dividend is a tax policy used by publicly traded firms as a means of shifting tax responsibility from shareholders during the sale of company shares. Dividends are overheads made by a company to its shareholder members.
Q&A Related to "What Is a Deemed Dividend?"
When a company makes a profit and decides not to reinvest the profit in the business, it can pay out a portion to each of its shareholders. This is called a dividend. When a company
http://www.investopedia.com/ask/answers/12/dividen...
Assume that ABC Inc. has an annual dividend of $4 per share and the stock is currently trading at $40. To calculate the yield, divide the dividend (4) by the share price (40) The
http://www.ehow.com/facts_7204422_dividend-yield-p...
a dividend is the number that is divided by the divisor
http://wiki.answers.com/Q/Is+the+42+a+dividend
When a company announces a stock split, it declares an increase in the number of outstanding shares and a corresponding cut in their par value. For instance, a two-for-one stock split
http://www.ehow.com/info_7845864_forward-split-for...
1 Additional Answer
Ask.com Answer for: what is a deemed dividend
What Is a Deemed Dividend?
A deemed dividend is a tax instrument used by publicly traded corporations as a means of shifting tax liability from shareholders during the sale of company stock. The IRS also permits the use of a deemed dividend as a means of spreading out investor tax... More »
Difficulty: Easy
Source: www.ehow.com
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2015 Ask.com