A payment made by a company to its shareholders is called a dividend.
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.
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.
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.
The date considered for dividend payment or bonus issue by companies to shareholders is typically known as the "record date." Shareholders must own the stock before this date to be eligible for the dividend or bonus issue. The company usually announces the record date alongside the ex-dividend date, which is the date on which the stock must be purchased to qualify for the upcoming dividend. Payments are then made on the specified payment date.
In its post-issue position, a dividend typically reduces the retained earnings of a company, as it represents a distribution of profits to shareholders. The dividend payment is made from the company's available cash or reserves and is recorded as a liability until it is paid out. After the payment, the cash balance decreases, and the retained earnings on the balance sheet reflect the reduction. Ultimately, dividends serve to return value to shareholders while impacting the company's equity structure.
Customarily, it is referred to as a "claim".
Cumulative preference shares are a type of equity security that entitles shareholders to receive dividends before any dividends are paid to common shareholders. If the company skips a dividend payment, the unpaid dividends accumulate and must be paid out in the future before any distributions can be made to common shareholders. This feature provides a level of financial security to cumulative preference shareholders, ensuring they receive their entitled returns even if the company faces financial challenges.
No country owns the Apple company. It is based in California in the USA but is owned by its many shareholders.
Ex Gratia means "by favor". In legal terms, this is a payment made by a company or employer when no payment is obligated. The payment is not made because a person is employed by the company and is unconnected to the services the company provides.
Dividends declared refer to the decision made by a company's board of directors to distribute a portion of its earnings to shareholders, which establishes a liability for the company. In contrast, dividends paid are the actual cash or stock distributions that shareholders receive on the specified payment date. While declared dividends indicate the company's intention to distribute profits, paid dividends reflect the execution of that intention. Essentially, a dividend can be declared but not yet paid until the payment date arrives.
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.
Payments made by companies to stockholders are called dividends. These are typically distributed from the company's profits and can be issued in cash or additional shares of stock. Dividends serve as a way to reward shareholders for their investment and provide a return on their equity ownership in the company.