Question

Both mutual insurance companies and stock insurance companies have which of the following features in common?

a) Both can issue dividends:The stock company can issue dividends to its
b) stockholders; the mutual company can issue dividends to its policyowners.

Answer 1

Mutual insurance companies and stock insurance companies can both issue dividends.

Step-by-step explanation:

Mutual insurance companies and stock insurance companies both have the feature of being able to issue dividends. A stock insurance company can issue dividends to its stockholders, while a mutual insurance company can issue dividends to its policyowners.

Dividends are payments made by a company to its shareholders or policyowners as a share of the company's profits.

For example, if a mutual insurance company has made a profit, it may distribute a portion of that profit as dividends to its policyowners.