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What are Special Dividends?

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

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What is a dividend?

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1. In what situation might a company issue a special dividend?

2. Calculate the amount of special dividend that Jan would receive given the following information: The ABC Company declared a special dividend of $1.25 per share and Jan owns 750 shares.

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About This Quiz & Worksheet

Determine what you understand about special dividends via these interactive study assessments. You'll be quizzed on key points like what a dividend is and when a company might allot a special dividend.

Quiz & Worksheet Goals

The quiz/worksheet will quiz you on these concepts:

  • How to calculate for a special dividend
  • Reason a company wouldn't issue a special dividend
  • The difference between a special dividend and a regular one

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about the reasons a company would issue a special dividend and why it wouldn't
  • Information recall - access the knowledge you've gained regarding how to calculate a special dividend
  • Distinguishing differences - compare and contrast topics from the lesson, such as a regular dividend and a special one

Additional Learning

Use the lesson we've entitled What are Special Dividends? to learn more about the following subjects:

  • What a public company is
  • Why special dividends would be issued
  • How that might work with regard to shareholders
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