Harris Texas Guaranty of Payment of Dividends on Stocks

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Harris
• Control #: US-1084BG
• Format: Word; Rich Text

Description

A dividend is a participation in the profit, usually based on the number of shares of stock in a corporation and the rate of payout approved by the board of directors or management, which is paid to shareholders for each share they own. Harris Texas Guaranty of Payment of Dividends on Stocks is a legal provision that ensures shareholders receive their entitled dividend payments promptly and without default. This guaranty provides an additional layer of protection to investors, emphasizing the commitment of the state of Texas and the Harris County government to maintain stability and security within the stock market. The Harris Texas Guaranty of Payment of Dividends on Stocks applies to various types of dividend-paying stocks, including but not limited to: 1. Common Stocks: These are the most widely held form of equity ownership in a corporation. Common stockholders are entitled to a share of the company's profits, and the Harris Texas Guaranty ensures that their dividend payments will be honored. 2. Preferred Stocks: These stocks have priority over common stocks when it comes to dividend payments. The guaranty protects preferred stockholders from any potential default in dividend payments. 3. Cumulative Stocks: Cumulative stocks guarantee that if a corporation fails to pay dividends in a given year, the unpaid amounts will accumulate and become payable in future years. The Harris Texas Guaranty ensures that cumulative stocks are upheld and any accumulated dividends will be paid. 4. Participating Stocks: Participating stocks allow shareholders to receive additional dividends in case the company's profits exceed a predetermined level. The guaranty ensures that participating stocks are honored in accordance with their terms. The Harris Texas Guaranty of Payment of Dividends on Stocks serves as a reassurance for stock investors, assuring them that their investment in dividend-paying stocks will remain financially secure. By protecting the interests of shareholders, the Harris Texas Guaranty contributes to a stable investment environment, attracting more investors to the region.

Harris Texas Guaranty of Payment of Dividends on Stocks is a legal provision that ensures shareholders receive their entitled dividend payments promptly and without default. This guaranty provides an additional layer of protection to investors, emphasizing the commitment of the state of Texas and the Harris County government to maintain stability and security within the stock market. The Harris Texas Guaranty of Payment of Dividends on Stocks applies to various types of dividend-paying stocks, including but not limited to: 1. Common Stocks: These are the most widely held form of equity ownership in a corporation. Common stockholders are entitled to a share of the company's profits, and the Harris Texas Guaranty ensures that their dividend payments will be honored. 2. Preferred Stocks: These stocks have priority over common stocks when it comes to dividend payments. The guaranty protects preferred stockholders from any potential default in dividend payments. 3. Cumulative Stocks: Cumulative stocks guarantee that if a corporation fails to pay dividends in a given year, the unpaid amounts will accumulate and become payable in future years. The Harris Texas Guaranty ensures that cumulative stocks are upheld and any accumulated dividends will be paid. 4. Participating Stocks: Participating stocks allow shareholders to receive additional dividends in case the company's profits exceed a predetermined level. The guaranty ensures that participating stocks are honored in accordance with their terms. The Harris Texas Guaranty of Payment of Dividends on Stocks serves as a reassurance for stock investors, assuring them that their investment in dividend-paying stocks will remain financially secure. By protecting the interests of shareholders, the Harris Texas Guaranty contributes to a stable investment environment, attracting more investors to the region.