Question

Cash dividends are:

a. Paid to the stockholders who own the stock as of a particular date, the date of record.
b. Declared on several dates, referred to as the payout dates.
c. Paid on the date of declaration.
d. None of the above.

Answer 1

A cash dividend is a direct payment made by a company to its shareholders as a share of its profits. It is paid to the stockholders who own the stock as of a particular date, known as the date of record.

Step-by-step explanation:

A cash dividend is a direct payment made by a company to its shareholders as a share of its profits. It is a form of return on investment for the shareholders. Cash dividends are paid to the stockholders who own the stock as of a particular date, which is known as the date of record. For example, if a company announces a dividend of $0.50 per share and a person owns 100 shares, they will receive $50 as a cash dividend.