Zach purchased 200 shares of Fast Track Corporation last year. This year, he plans to hire an attorney to go after the company for failure to pay dividends. If Zach follows through with his plan, he will probably win the lawsuit because companies are obligated to pay their stockholders dividends for owning and holding the firm's stock.

Question

Quizplus · Accepted Answer

Companies are not obligated to pay dividends to their stockholders. Dividend payments are decided by the company's board of directors and are not guaranteed.

Zach Purchased 200 Shares of Fast Track Corporation Last Year