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Liquidating (script) dividends are when dividends are a return of capital instead of a return on capital.

1) True
2) False

User Jakc
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1 Answer

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Final answer:

Liquidating (script) dividends are when dividends are a return of capital instead of a return on capital. This statement is True.

Step-by-step explanation:

Liquidating (script) dividends are when dividends are a return of capital instead of a return on capital. This statement is True. In some cases, when a company does not have sufficient profits to distribute as dividends, they may return the shareholders' original investment by issuing liquidating dividends. These dividends are considered as a return of capital rather than a return on capital.

User BobK
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