A dividend is:
A) a financial asset that represents partial ownership of a company.
B) a payment made periodically to all shareholders of a company.
C) an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
D) a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.

Question

Quizplus · Accepted Answer

A dividend is a payment made periodically to all shareholders of a company. It represents a portion of the company's profits that is distributed to the shareholders as a reward for their investment in the company. Dividends are usually paid in cash, but they can also be paid in the form of additional shares of stock or other forms of property.

A Dividend Is