A dividend is
A) a promissory note issued by corporations when they borrow money.
B) an increase in the value of an asset over the purchase price initially paid for it.
C) the difference between the interest rate a bank pays on deposits and the interest rate it charges for loans.
D) the portion of a corporation's profits that the firm pays out each period to its shareholders.

Question

Quizplus · Accepted Answer

A dividend is the portion of a corporation's profits that the firm pays out each period to its shareholders. It is not a promissory note, an increase in asset value, or an interest rate difference.

A Dividend Is