Dividends, Redemptions, and Stock Repurchases

Summary

This practice note discusses dividends, redemptions, and stock repurchases by corporations. A corporation that declares a dividend or redeems or repurchases its own securities must comply with applicable state corporation law and related case law governing such actions. A publicly held company must also comply with disclosure requirements adopted by the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 (Exchange Act) and any national securities exchange on which the company's securities are listed.