# Auction Rate Dividend Payment

**IRI:** https://folio.openlegalstandard.org/RCxcU4AQo2mykjqSdB8EGpW

## Labels

**Preferred Label:** Auction-Based Dividend

**Alternative Labels:**

- Auction Dividend

## Definition

Auction Rate Income refers to a type of dividend income where the dividend rate is periodically adjusted through an auction process, such as a Dutch auction. This mechanism allows the dividend rate to be determined by investor demand, resulting in potentially variable payouts.

## Sub Class Of

- https://folio.openlegalstandard.org/R8ZlXt0J1JMbXm6T0xEg2SO

**Deprecated:** False