A share of a company's profits passed on to the shareholders on a periodic basis. Ordinary dividends are taxed as ordinary income and are reported on Line 9a of the Schedule B of the Form 1040. All dividends are considered ordinary unless they are specifically classified as qualified dividends.
Dividend income is one of the major advantages of stock ownership. Companies will report all aggregate ordinary dividends in box 1 of the Form 1099-DIV. Mutual fund companies pay and report dividends in the same manner.
Investment dictionary. Academic. 2012.
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ordinary shares — carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. Easyform Glossary of Law Terms. UK … Law dictionary
ordinary income — n: income that does not derive from the exchange or sale of capital assets or property used in one s trade or business and that for individuals includes compensation, interest, dividends, and short term capital gains Merriam Webster’s Dictionary… … Law dictionary
Ordinary Share Capital — Ordinary shares represent ownership in a limited liability company. Shareholders are entitled to dividends when they are declared by the company board of directors. Shareholders also have the last claim on the assets and income, after other… … Financial and business terms
ordinary shareholder — Ordinary shares carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. Easyform Glossary… … Law dictionary
ordinary share — The most common form of share. Holders usually have voting rights and receive dividends in line with the company s profitability and recommendation of its directors. Practical Law Dictionary. Glossary of UK, US and international legal terms.… … Law dictionary
Ordinary income — Part of a series on Taxation Taxation in the United States … Wikipedia
Ordinary Income — Income received that is taxed at the highest rates, or ordinary income rates. Ordinary income is composed mainly of wages, salaries, commissions and interest income (as from bonds). Ordinary Income can only be offset with… … Investment dictionary
Ordinary Shares — Any shares that are not preferred shares and do not have any predetermined dividend amounts. An ordinary share represents equity ownership in a company and entitles the owner to a vote in matters put before shareholders in proportion to their… … Investment dictionary
Ordinary Annuity — A series of equal payments made at the end of each period over a fixed amount of time. While the payments in an annuity can be made as frequently as every week, in practice, ordinary annuity payments are made monthly, quarterly, semi annually or… … Investment dictionary
ordinary shares — Apples mainly to international equities. shares of non U.S. companies traded in their individual home markets. Usually cannot be delivered in the U.S. Bloomberg Financial Dictionary See: ADR. Bloomberg Financial Dictionary See equity shares.… … Financial and business terms