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?"
At its most basic level, dividends are profit sharing. A share of common stock represents an ownership share in a company. Just as the owner of a small business enjoys the profits
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a dividend is the number that is divided by the divisor
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A cash dividend is money a business remits to stockholders at the end of a given period - such as a year, quarter or month - in accordance with corporate directors' stipulations.
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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
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