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Community: Investing Wiki

Term Of The Hour

dividend retained earnings: Original post by Cam Merritt of Demand Media When a company pays its stockholders a dividend, it's converting a portion of the stockholders' stake in the company into cash. On the company's balance sheet, a cash dividend shows up as a decrease in retained earnings and a decrease in stockholders' equity. However, it's important to note that this decline in equity does not mean that the stockholders…

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