Small Business Resources, Business Advice and Forms from AllBusiness.com

Dividends

The best tips and advice from our vast library of articles, videos, and business tools

Business Glossary
icon - industry associations

Definitions for: trading dividends
trading dividends

technique of buying and selling stocks in other firms by a corporation in order to maximize the number of dividend it can collect. This action is advantageous, because 80% of the dividend income it receives from the stocks of other companies is not taxed, according to Internal Revenue Service regulations.

Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

Search the Business Glossary: