ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Investment income is the profit earned from investments such as real estate and stock sales. Dividends from bonds also are investment income.
Detailed explanation-2: -A company may issue a stock dividend rather than cash if it doesn’t want to deplete its cash reserves. Dividends, whether in cash or in stock, are the shareholders’ cut of the company’s profit.
Detailed explanation-3: -Answer and Explanation: The answer is b. A stock dividend does not change a stockholder’s ownership percentage.
Detailed explanation-4: -What Is a Dividend? 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.