thefarm
:
Capital distribution happens only if the company liquidates (closes down). The remaining value of the company after debts are paid are distributed to shareholders in proportion to their shares. Dividends on the other hand are distributed while the company is still operating, as a way of rewarding shareholders and keeping them happy with their investment in the company.
thefarm : Capital distribution happens only if the company liquidates (closes down). The remaining value of the company after debts are paid are distributed to shareholders in proportion to their shares. Dividends on the other hand are distributed while the company is still operating, as a way of rewarding shareholders and keeping them happy with their investment in the company.