Dividends are periodic distributions of cash to the stockholders of a firm.

Question

Quizplus · Accepted Answer

Dividends are indeed periodic distributions of cash (or sometimes stock) to the stockholders of a firm. This is one way for a company to share its profits with its owners, and is often seen as a sign of financial health and stability. However, not all companies pay dividends, and some may decide to suspend or reduce them during times of financial difficulty or strategic change.

Dividends Are Periodic Distributions of Cash to the Stockholders of a Firm