corporate finance

Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

corporate finance

Postby chandniwadhwani92 » Thu Nov 27, 2014 8:55 am

Liquidating Dividend- It is treated as return on capital and amount over the investors tax basis are treated as capital gains What does it means? Plz explain tax purpose o liquidating dividend?????????

Finance Junkie
Posts: 709
Joined: Wed Apr 09, 2014 6:28 am

corporate finance

Postby edupristine » Wed Dec 03, 2014 11:46 am

It means if investor have purchased a stock on $100000 which is called Tax basis and at the time of liquidation investor is getting $102000.
Then he needs to pay tax on $2000.

Return to “CFA Level I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.