dividends

Definition

Money that companies hand back to shareholders because they couldn't figure out how to burn it all on expansion. It's the reward for owning a piece of a company that actually makes profit—a rare and increasingly mythical creature in the startup world.

Example Usage

Our tech company finally paid its first dividend ever, which surprised everyone including the board who forgot dividends were a thing.

Source: Investment and dividend terminology

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liabilities

Everything a business owes to others—debts, obligations, and promises to pay that hang over the company like a financial sword of Damocles. It's the right side of the balance sheet that accountants love to balance against assets, creating the fundamental equation of accounting. Can also mean that person on your team who's more problem than solution.

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duty-free

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rollover risk

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