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[Blaka]

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.

 

[IB DD]

The general law in the United States already states that a company must always disclose publicly the procedures it has laid down for dividends distribution. Any alteration to the already established provisions should also be publicly declared.

 

[Wisdom01]

I think Under U.S. law, companies are permitted to distribute dividends at their discretion, as long as they adhere to federal and state regulations. Typically, dividends are paid to shareholders from the company's net profits. that's the concept