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

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10y ago

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What is dividend signaling theory?

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.


What is the difference between a dividend and a capital gain?

A dividend is a payment made by a company to its shareholders from its profits, while a capital gain is the profit made from selling an investment or asset for more than its purchase price.


What is the difference between capital gain and dividend?

Capital gain is the profit made from selling an investment or asset for more than its purchase price, while a dividend is a payment made by a company to its shareholders from its profits.


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Shareholders are actually owners of the company in which they hold stock in. All decisions should be made with the consideration of maximizing shareholders wealth. It is not to just increase the size of the company or to see that executives get rich but rather to maximize the return for shareholders/owners of the corporation.


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What in legal terms is a payment ex gratia?

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What encourages people to buy shares in ownership of a company?

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.


What is an annual payment called?

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A payment made by a company to a stockholder to share in the company's profits is known as?

A dividend.


Differnece between preference dividend and ordinary dividend?

Preference dividends are payments made to preferred shareholders before any dividends are distributed to ordinary shareholders. They typically have a fixed rate and are paid out regardless of the company's profitability, ensuring a more stable return for preferred investors. Ordinary dividends, on the other hand, are paid to common shareholders and can vary based on the company's performance and discretion of the board, reflecting the company's profitability and growth prospects. In essence, preference dividends provide more security and priority in payment compared to ordinary dividends.


Definition of paid up capital stock?

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