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A payment made by a company to its shareholders is called a dividend.

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Q: What is a payment made by a company to its shareholders called?
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This refers to the idea that the price of a dividend (a corporate payment made by a corporation to its shareholders) signals positive future performance of the company.


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The dividends encourage the people to buy shares in the company as they would receive a share of the profits made by business they invested in.


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A fixed payment which is made annually is called an annuity.


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