WHAT DO U MEAN BY DIVIDENDS. WHAT IS THE TYPE OF DIVIDEND
AND IS THIS PROFIT OR INTREST?
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Answer Posted / reena
Dividends is the part of the profit of the Company which is
distributed among its registered owners i.e. the Equity and
preference Shareholders. It can be distributed out of the
current profits or accumlated profits of the Company. There
are no types of dividend. This is the part of profit only.
But if the Company is engaged in construction activity and
its project would not yield profit for a lenghty period
then the Comapny can pay interest on the share capital.
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