Stephen A. Ross,
Massachusetts Institute of Technology
Randolph W. Westerfield,
University of Southern California
Bradford D. Jordan,
University of Kentucky
Gordon S. Roberts,
York University
| Clientele Effect | Stocks attract particular groups based on dividend yield and the resulting tax effects.
(See Refer to page 579)
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| Date of Payment | Date on the dividend cheques.
(See Refer to page 567)
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| Date of Record | Date on which holders of record are designated to receive a dividend.
(See Refer to page 567)
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| Declaration Date | Date on which the board of directors passes a resolution to pay a dividend.
(See Refer to page 566)
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| Distribution | Payment made by a firm to its owners from sources other than current or accumulated earnings.
(See Refer to page 565)
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| Dividends | Payment made out of a firm's earnings to its owners, either in the form of cash or stock.
(See Refer to page 246, 565)
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| Ex-Dividend Date | Date two business days before the date of record, establishing those individuals entitled to a dividend.
(See Refer to page 566)
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| Homemade Dividends | Idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock.
(See Refer to page 570)
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| Information Content Effect | The market's reaction to a change in corporate dividend payout.
(See Refer to page 578)
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| Regular Cash Dividend | Cash payment made by a firm to its owners in the normal course of business, usually made four times a year.
(See Refer to page 565)
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| Repurchase | Another method used to pay out a firm's earnings to its owners, which provides more preferable tax treatment than dividends.
(See Refer to page 585)
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| Residual Dividend Approach | Policy where a firm pays dividends only after meeting its investment needs while maintaining a desired debt-to-equity ratio.
(See Refer to page 581)
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| Reverse Split | Procedure where a firm's number of shares outstanding is reduced.
(See Refer to page 590)
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| Stock Dividend | Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
(See Refer to page 588)
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| Stock Split | An increase in a firm's shares outstanding without any change in owner's equity.
(See Refer to page 588)
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| Stripped Common Shares | Common stock on which dividends and capital gains are repackaged and sold separately.
(See Refer to page 570)
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| Target Payout Ratio | A firm's long-term desired dividend-to-earnings ratio.
(See Refer to page 585)
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| Trading Range | Price range between highest and lowest prices at which a stock is traded.
(See Refer to page 589)
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2002 McGraw-Hill Higher Education