Payout policy - The mechanics of payout policy

4 important questions on Payout policy - The mechanics of payout policy

What is the date of record?

Set by the firm's directors, the date on which all persons whose names are recorded as stockholders receive a declared dividend at a specified future time.

What is the open market share repurchase?

A share repurchase program in which firms simply buy back some of their outstanding shares on the open market.

What is the tender offer repurchase?

A repurchase program in which a firm offers to repurchase a fixed number of shares
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What is dividend reinvestment plans?

Plans that enable stockholders to use dividends received on the firm's stock to acquire additional shares at little or no transaction cost.

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