Dividends are payments made by a corporation to its shareholders as a way of distributing a portion of the company's profits. They are usually paid in cash, but can also come in the form of additional shares of stock or other property. Dividends are typically paid out quarterly or annually and can be a way for investors to generate passive income from their stock holdings.

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Dividends Are

Question 187

Multiple Choice

Dividends are

A) the portion of a corporation's profits that are distributed to stockholders.
B) the portion of a corporation's revenues that are distributed to bondholders.
C) bonuses given to managers of corporations, to ensure that the managers perform in the way that stockholders want.
D) taxes on the profits of corporations.

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