dividend for part of tax year a dividend whose value is determined on the basis of a period of time of less than a full fiscal year
such as “sales” to the more complex and obscure such as “EBITA.” While audited accounts are intended to ensure that the company’s interim and full-year trading statements provide a truthful assessment as to how the company has fared during the specified trading period, investors frequently pay particular attention to the “outlook” or “prospects” section of a company review, on the basis that stock valuations are heavily geared to perceptions of future earnings
Entrepreneurs may require both debt and equity financing, and often start their firms by financing growth through equity. Equity capital is money invested in the venture with no legal obligation on the entrepreneur to repay the principal amount or to pay interest on it; however, it requires sharing the ownership and profits with the funding source, and possibly also paying dividends to equity investors.
By Siri Terjesen
Definitions of ’interim dividend’ and meaning of ’interim dividend’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’interim dividend’ and other financial terms with our online QFINANCE Financial Dictionary.