What do growing corporations typically do instead of paying dividends to their shareholders?

Question

Quizplus · Accepted Answer

Growing corporations typically reinvest their profits in the business to fund further growth and expansion, which can lead to higher future profits and potentially higher stock prices in the long run. This is known as retained earnings and is a common strategy for companies with high growth potential. Paying bonuses to shareholders would not be a common practice, selling more shares could dilute the value of existing shares, and paying back loans more quickly may not be a priority if the company is focused on growth.

What Do Growing Corporations Typically Do Instead of Paying Dividends