Question

Which of the following would not pay a dividend? O bonds O gifts savings stocks

Answer 1

Answer:

gifts

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

A dividend can be defined as the monetary benefits or gains earned from an investment.

Gifts would not pay a dividend to its beneficiaries or holders.

However, the following securities or investments offer dividends to their respective holders;

I. Bonds

II. Savings.

III. Stocks.

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.