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⍰ ASK What are the rules and regulations regarding the distribution of dividends by companies in the USA?

Companies follow state corporate laws for dividends. These laws set rules for declaring and distributing dividends. Before distribution company check their financial health to ensure earnings support it.

The SEC regulates dividend disclosures. Companies must provide accurate and timely financial information, including dividends in filings. This aids investor decisions and maintains market integrity.

Fraudulent practices regarding dividends are restricted. Companies cant manipulate earnings for inappropriate dividends, facing severe penalties for violations.
 

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