Ordinary shares receive low dividends because they do not perform very well.

Question

Quizplus · Accepted Answer

The amount of dividends paid to ordinary shareholders is determined by the company's profits and the discretion of its board of directors. Low dividends may be a result of the company reinvesting its profits back into the business in order to achieve growth, or it may simply reflect a cautious approach to dividend payments. This does not necessarily mean that ordinary shares do not perform well, as their value can increase based on other factors such as market demand and the company's overall financial health.

Ordinary Shares Receive Low Dividends Because They Do Not Perform