Final answer:
Cash payments or additional shares distributed from corporate profits to stockholders are known as dividends. They are one of the main ways shareholders can earn returns, in addition to capital gains.
Step-by-step explanation:
The cash payments or additional shares of stock that are distributed to stockholders from corporate profits are called dividends.
When a company earns a profit, it can choose to distribute a portion of these profits back to its shareholders in the form of a dividend.
This is a way for shareholders to earn a return on their investment. Additionally, investors can earn a return through capital gains, which occur when the value of a stock increases from the price at which it was originally purchased to the price at which it is later sold.
Dividends are one of the main ways investors can make money from owning shares in a company, alongside capital gains.
Cash payments or additional shares of stock that are distributed to stockholders from corporate profits are called dividends.
Dividends are a way for companies to share their profits with their shareholders. It can be in the form of cash payments or additional stocks.