ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
These are the distribution of profits from a company to the stockholders
A
Dividends
B
Options
C
Stocks
D
Bonds
Explanation: 

Detailed explanation-1: -So, we can say that a share of a company’s net profit distributed by the company to its stockholders is called dividend.

Detailed explanation-2: -Dividends are distributions of property a corporation may pay you if you own stock in that corporation. Corporations pay most dividends in cash. However, they may also pay them as stock of another corporation or as any other property.

Detailed explanation-3: -Capital profits can be used for distribution of dividend if .

Detailed explanation-4: -A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders.

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