Dividends are

Question

Dividends are

Quizplus · Accepted Answer

Dividends are payments made by a corporation to its shareholders, typically in the form of cash or additional shares of stock, as a portion of the company's profits. It is essentially the amount of corporate profit paid out for each share of stock. Choice B is incorrect because profits used for investment in new plants and equipment are typically reinvested in the company, not distributed to shareholders as dividends. Choice C is also incorrect because an increase in the market value of an asset refers to capital gains, not dividends.

Dividends Are