optional dividend

optional dividend definition - business

optional dividend

A dividend in which the shareholder may choose among two or more forms of payment. For example, a firm's directors may offer the shareholders a choice between cash or an equal dollar amount of stock.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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