Friday, March 27, 2009

What are Dividends of stock?

Dividends are payments made by a corporation to its shareholders. This is usaually done quarterly(every three months). It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend.

No comments:

Post a Comment