BANKING AFFAIRS

Detailed explanation-1: -Definition: Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval.

Detailed explanation-2: -A dividend is the distribution of a company’s earnings to its shareholders and is determined by the company’s board of directors. Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.

Detailed explanation-3: -Dividends can be issued as cash payments, as shares of stock, or other property. So, we can say that a share of a company’s net profit distributed by the company to its stockholders is called dividend.