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Return of Capital

A dividend that is paid out of paid-in capital rather than from current net profits or retained earnings. Unlike, stock…

Capital Dividend

A dividend that is paid out of paid-in capital rather than from current net profits or retained earnings. Unlike, stock…

Common Stock Ratio

The proportion of common shareholders' equity to long-term financing of a company. In other words, this ratio relates common stock...

Retention Ratio

A financial ratio that relates retained earnings to profits as illustrated in the following: Or also: Retention ratio = 1-...

Plowback Ratio

A financial ratio that relates retained earnings to profits as illustrated in the following: Or also: Plowback ratio = 1-...

Total Capitalization

The combination of long-term debt, preferred stock, and common stock. Generally speaking, it is the market value of equity plus...

Bonus Share

A share that is issued by a company, free of charge, to its existing stockholders on a prorata basis. This...

Bonus Stock

A stock that is issued by a company, free of charge, to its existing stockholders on a prorata basis. This...

Equity Reserve

A component of the equity section on the statement of financial position/ balance sheet that belongs to the equity's respective...

Equity Capital

In the context of accounting, equity capital (also known as shareholders' equity) constitutes all components of the shareholders' equity (as...