Question

What are the distributions of either cash or stock to shareholders by a corporation called?

1) Coupon payments
2) Retained earnings
3) Dividends
4) Capital payments
5) Diluted profits

Answer 1

Dividends are distributions of either cash or stock to shareholders by a corporation.

Step-by-step explanation:

The distributions of either cash or stock to shareholders by a corporation are called dividends.

Dividends are payments made by a corporation to its shareholders as a share of the company's profits. They are usually paid in cash, but can also be paid in additional shares of stock.

For example, if a company declares a dividend of $0.50 per share and a shareholder owns 100 shares, they would receive a dividend payment of $50 ($0.50 x 100 shares).