Final answer:
The correct answer is option b. The portion of a corporation's profits paid to shareholders is known as dividends, which are direct payments proportionate to the number of shares owned. Stable companies typically offer such dividends to their stockholders.
Step-by-step explanation:
The portion of a corporation's profits that the firm pays out to shareholders is known as dividends. When a company pays a dividend, it distributes a percentage of its profits directly to the owners of its stock. The amount one receives from dividends depends on the number of shares they own. For example, if a stock pays a dividend of 75 cents per share and someone owns 85 shares, they will receive a total dividend payment accordingly.
Stable companies often offer dividends because they generate consistent profits and choose to distribute a portion of those profits to their shareholders. These companies may be in industries such as consumer goods or utilities. Investors who hold stocks that pay dividends can benefit from this regular income, in addition to potential capital gains from the increase in stock value over time.