Which of the Following Is the Best Definition of a Dividend

question 28

Multiple Choice

Which of the following is the best definition of a dividend?

• A) The market's reaction to a change in corporate dividend payout.
• B) Idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock.
• C) Date two business days before the date of record, establishing those individuals entitled to a dividend.
• D) Payment made out of a firm's earnings to its owners, either in the form of cash or stock.
• E) Payment made by a firm to its owners from sources other than current or accumulated earnings.

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Definitions:

Negative

Pertaining to a lack or absence of something, especially in terms of force, charge, or emotions in various contexts.

Cognitive Consistency Theories

Theories in psychology that suggest individuals are motivated to maintain consistency among their cognitions (beliefs, attitudes, and perceptions).

Inconsistencies

Situations or statements that are not in agreement, lack compatibility, or are full of contradictions.

Individuals

Distinct or separate entities, often referred to in the context of singular human beings.