DIVIDEND

Dividend

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, it can either re-invest it in the business, or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend. Distribution to shareholders can be in cash or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.

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dividend

Noun

  1. A number or expression that is to be divided by another.
    In "42 ÷ 3" the dividend is the 42.
  2. A pro rata payment of money by a company to its shareholders, usually made periodically (eg, quarterly or annually).


The above text is a snippet from Wiktionary: dividend
and as such is available under the Creative Commons Attribution/Share-Alike License.

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