SIE Exam Question 702: Answer and Explanation

Question: 702

____ A payment to shareholders that exceeds the company's retained earnings; payment is made from capital rather than earnings.

  • A. Liquidating dividend
  • B. Constructive dividend
  • C. Ordinary dividend
  • D. Qualified dividend

Correct Answer: F

Explanation:

A payment to shareholders that exceeds the company's retained earnings is a liquidating dividend. The payment is made from capital rather than earnings.

All content of site and practice tests © 2022 Jack.
Quick View

FINRA Practice Tests