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Free Books / Finance / Banking, Credits And Finance / | ![]() |
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Surplus Fund |
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This section is from the book "Banking, Credits And Finance", by Thomas Herbert Russell. Also available from Amazon: Banking, credit and finance (Standard business).
It is not customary to pay a larger dividend than good interest on the investment. In some states some classes of corporations are not permitted to declare dividends larger than a fixed amount. The profits remaining after expenses and dividends are paid are credited to what is called a surplus fund. This fund is the property of the shareholders and is usually invested in good securities.
 
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