What Are Dividend Payments

question 20

Multiple Choice

What are dividend payments?

• A) a part share of the profits or earnings of a company paid to each shareholder on the basis of the number of shares they hold
• B) the difference between the original cost price of a share and the price an investor receives when that share is sold
• C) payments made to a company by investors for a share of the ownership of that company
• D) incremental increases in the value of the stock held by an investor due to rises in share price

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Definitions:

Treasury Stock

Shares that were issued and then repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Classification

The systematic arrangement of business transactions and accounts in categories or groups based on similar characteristics for financial reporting and analysis.

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.