Cutting A Melon

  

There are two difficult things about cutting a melon. First, you need to be able to determine whether the melon in question has reached optimal ripeness. And second, you need to know what to do about the rind.

(Please excuse the previous paragraph. It was intern day here at Shmoop and the current crop of undergraduates has been...disappointing. We now return you to our regularly scheduled writer.)

"Cutting the melon" is financial-world slang for when a company provides a dividend above and beyond their normal dividend. The melon represents the company's profits. The cutting of said melon represents the divvying up of those profits.

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finance a la shmoop what is dividend yield? ah dividends the sign of the truly

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well-to-do company well when a company has nothing better to do with its cash

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and it has bought all of the corporate jets it wanted put in fountains in the [Fountain of water appears]

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executive suite bathrooms and offered massage and dog therapy to all of its

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employees it can then at its own discretion pay a dividend to its common

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shareholders of record common shareholders yep that's who gets

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dividends if you're an employee at a company and got say a bunch of stock [Employee stood beside company]

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options when the company signed you you don't get dividends unless you buy out

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all of the anti zombie spray it ever wanted along with the jets and fountain

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dividend if their earnings performance was you know this good [Thumbs up appears]

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