Michaela Petty owns common shares in Procter & Gamble. Last quarter she received a cheque from P&G for $132, which is her share of P&G's distributed profits. Petty has received which of the following?

Question

Quizplus · Accepted Answer

Petty received a cheque for her share of P&G's distributed profits, which is called a dividend. Therefore, the best choice is C, dividends. A is incorrect because interest would typically refer to income from bonds or savings accounts. B is incorrect because yield is a broader term that can refer to various types of returns on an investment (such as both dividends and capital gains), but in this case, the specific type of return Petty received was a dividend. D is incorrect because capital gain would refer to a profit made from selling an asset (such as common shares) at a higher price than what was paid for it, which is not applicable in this scenario.

Michaela Petty Owns Common Shares in Procter & Gamble