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they are determined by the board of directors

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Celia Lemke

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4y ago

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What following best represents the stream of income that is available to common stockholders?

Stocks that pay dividends are a stream of income for common stock holders. Dividends are paid out either quarterly or yearly. The level of dividend is determined by the company as an incentive to purchase stock.


How are dividends on common stock determined?

they are determined by the board of directors


What is the difference between the various types of stocks?

The primary types of stocks are common stocks and preferred stocks. Common stocks give shareholders voting rights and a claim on company profits through dividends, but they are riskier as they are last in line during liquidation. Preferred stocks typically do not offer voting rights but provide fixed dividends and priority over common stockholders in the event of liquidation. Additionally, stocks can be classified as growth stocks, which are expected to grow at an above-average rate, and value stocks, which are considered undervalued relative to their fundamentals.


What kind of stocks are there?

Common stocks are shares that have voting rights which means important company issues are voted upon within these stocks and may receive dividends. Preferred stocks are none voting stocks but are first in line for dividends if a company dissolves. Class A stocks are public common stocks and they carry one vote per share. Class B stocks are worth 10 votes per share and have more control over companies.


What is the requirement for dividends for common stock to be paid in cash?

The requirement for dividends to be paid in cash to common stockholders is typically determined by the company's board of directors.


What is the reason behind the value of stocks?

The value of stocks is determined by the perceived future profitability and growth potential of the company issuing the stock. Investors buy stocks in the hope that the company will perform well and generate returns in the form of dividends or capital gains.


Why do investors buy stocks that pay dividends?

Dividends provide income to the owners of the stock.


How do you collect dividends per shares on stocks?

no


What is true about preferred stocks?

Preferred stocks are a type of equity security that typically provide shareholders with fixed dividends, which are paid before any dividends are distributed to common stockholders. They usually have a higher claim on assets than common stocks in the event of liquidation. However, preferred shareholders generally do not have voting rights in the company. Additionally, preferred stocks can be callable, meaning the issuing company can repurchase them at a predetermined price after a certain date.


When do you have to pay taxes on dividends?

You have to pay taxes on dividends when you receive them from investments in stocks or mutual funds.


What guarantees dividends will be paid to its owners?

preferred stocks


WHAT IS CHEAPEST GAS STOCKS WITH HIGHEST DIVIDENDS?

musa