Dividends are
A) government profits distributed among bondholders.
B) corporate profits distributed among shareholders.
C) capital gains realized by stockholders.
D) promissory notes issued by corporations.

Question

Quizplus · Accepted Answer

Dividends are a portion of a company's earnings that are distributed to its shareholders as a return on their investment. Therefore, dividends are corporate profits distributed among shareholders. Choice A, C, and D are not accurate definitions of dividends.

Dividends Are