Cutting A Melon

外汇网2021-06-19 16:33:55 138

A slang term used to describe when a board of directors declares an additional pidend in addition to the regular distribution. The additional pidend can be in the form of cash, stock or property.

Taobiz explains Cutting A Melon

The board of directors (BOD) is responsible for deciding how it will share the company's earnings with shareholders in the form of pidends. In most cases, pidends are issued in accordance to a set policy and are paid on pset schedule, such as annually or quarterly.

The BOD is cutting a melon when the company has earned additional income, this is the melon and distributes a portion of it to shareholders. The bigger the melon, the sweeter it tastes to investors!

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