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WHAT DO U MEAN BY DIVIDENDS. WHAT IS THE TYPE OF DIVIDEND
AND IS THIS PROFIT OR INTREST?
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Answer Posted / bee
Dividends are payments made by a corporation to its
shareholder members. It is the portion of corporate profits
paid out to stockholders. When a corporation earns a profit
or surplus, that money can be put to two uses: it can
either be re-invested in the business (called retained
earnings), or it can be paid to the shareholders as a
dividend. Many corporations retain a portion of their
earnings and pay the remainder as a dividend.
Basically, dividend takes various forms and these can be
refer to types of dividend. These are; cash dividend, sock
dividend etc. However, dividend can be regarded as
share/apportion of profit to shareholder after interest and
tax, and not interest on money invested because it can only
be paid when company realised profit.
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