In finance, a dividend unit is the right to receive payments equal to actual
dividend
A dividend is a distribution of profits by a corporation to its shareholders, after which the stock exchange decreases the price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex ...
s paid on a
share or a
stock
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporatio ...
.
A dividend unit can be granted for a term, for example 20 years from the date of grant.
In the United States, dividend units are sometimes offered to employees as part of their retirement plan.
References
Units
Unit may refer to:
General measurement
* Unit of measurement, a definite magnitude of a physical quantity, defined and adopted by convention or by law
**International System of Units (SI), modern form of the metric system
**English units, histo ...
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