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Brilliant_brown [7]
3 years ago
9

What are dividend payments?

Business
1 answer:
Burka [1]3 years ago
7 0

Answer:

D) a share of the profits paid to each shareholder on the basis of the number of shares they hold.

Explanation:

Dividend: The dividend is distributed when the company is earning profits. If the company is suffering losses, then no dividend is declared. In this, the priority is given to the preference shareholders then equity shareholders.

After distributing the dividend to the shareholders, the balance would be transferred to the retained earnings which is come under shareholder equity in the balance sheet.

So, based on their holding shares, the dividend is paid to each shareholder.

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