Dividends are declared by the board of directors, usually at regular intervals. In the U.S., they may be paid in bonds or stocks of a company, in notes, or in cash. Holders of preferred stock must be paid their dividends before anything is paid on common stock. Businesses being terminated may issue liquidation dividends. Insider Trading B uying and selling shares of stock or other securities based on special knowledge not available to others, such as information about new products not yet public.
Insider trading is illegal.
They became enormously popular with investors in the early 1980s because of their high yields, relative safety, and high liquidity. Much of the money-market growth came at the expense of banks and thrift institutions. With the drop in interest rates in the late 1980s, many investors moved from money-market funds to stock mutual funds and other investments. The underwriters and the company that issues the shares control the IPO process. They have wide latitude in allocating IPO shares.