Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called
A)interest.
B)a return.
C)dividends.
D)growth.
E)retained earnings.

Question

Quizplus · Accepted Answer

Dividends are payments made by a company to its shareholders as a portion of the profits earned. They are a common way for companies to share their profits with their shareholders, and are often paid out on a regular basis, such as quarterly or annually. As Jennifer earns a portion of the company's profits, it makes sense that she earns dividends on her investment in stocks. Options A, B, D and E are not correct, as they do not specifically refer to the payments made to shareholders as a portion of company profits.

Jennifer Has Money Invested in Stocks