Dividends

Dividends iare distributions of cash or stock that a corporation pays to stockholders when permitted by law and the company has sufficient surplus or earnings. Dividends on preferred stock are often specified contractually (sometimes accruing), even if Dividends are rarely paid before an exit.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.