A g a liquidating trust

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A liquidating dividend is distinguished from regular dividends that are issued from the company's operating profits or retained earnings.A liquidating dividend may be made in one or more installments.“Preferred” listings, or those with featured website buttons, indicate YP advertisers who directly provide information about their businesses to help consumers make more informed buying decisions.

As company operations end, remaining assets go to existing creditors and shareholders.

Each of these parties has a priority in the order of claims to company assets.

The most senior claims belong to secured creditors, followed by unsecured creditors, including bondholders, the government (if the company owes taxes) and employees (if the company owes them unpaid wages or other obligations).

In the United States, a corporation paying out liquidating dividends will issue a Form 1099-DIV to all of its shareholders that details the amount of the distribution.

In general, with regular dividends, on and after the ex-dividend date, a seller is still entitled to the payout even if she/he has already sold it to a buyer.

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