A repayment of ill-gotten gains that is imposed on wrong-doers by the courts. Disgorgement is the forced giving up of profits obtained by illegal or unethical acts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. A court may order wrongdoers to pay back illegal profits, with … [Read more...]
Discretionary Beneficiary(Trust)
Discretionary beneficiaries are those named in a trust or similar document to whom distributions may be made. It is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often happens in sophisticated commercial … [Read more...]
Who is a Direct-Access Broker?
A stockbroker that concentrates on speed and order execution - unlike a full-service broker that focuses on research and advice. Day traders could trade their markets directly via the various exchanges, but this would require a trading account with each exchange, so it is more efficient and easier to use a day trading brokerage. In contrast to traditional investors who usually … [Read more...]
What is a Dividend Irrelevance Theory?
Dividend Irrelevance Theory is a theory that a company’s dividend policy has no real effect on the value of the company. A theory which explains that investors are not concerned with a company's dividend policy since they can sell a portion of their portfolio of equities if they want cash. The dividend irrelevance theory essentially indicates that an issuance of dividends … [Read more...]
what is Dividend Recapitalization
Issuing debt and using the proceeds to pay a special dividend to stockholders. When a company incurs a new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to selling its equity stake in the company. Dividend … [Read more...]