accumulating shares meaning
Ordinary shares issued to holders of ordinary shares in a company, instead of a dividend. Accumulating shares are a way of replacing annual income with capital growth; they avoid income tax but not capital gains tax. Usually tax is deducted by the company from the declared dividend, in the usual way, and the net dividend is then used to buy additional ordinary shares for the shareholder.
- Both have recently begun to accumulate shares of Quick & AMP; Reilly.
- The bank intends to continue accumulating shares in the six funds, officials said.
- Institutional investors are accumulating shares, traders said.
- Undaunted, Pennzoil began slowly accumulating shares of United Gas on the open market.
- Japan Investment Trust's Endo said he was accumulating shares of semiconductor equipment makers.