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Dividend Equivalent Right (DER)

The right to be credited with additional shares (or cash) under a restricted stock unit (RSU), restricted stock, stock option, or other equity-based award for the value of dividends that the company has paid on its shares before the equity award vests or is still held. The topic of whether dividend equivalent rights will be paid most often arises with RSUs (see the detailed FAQ in the section on restricted stock units elsewhere on this website). Check your stock plan for details.

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