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What is a payment made by a company to its shareholders called?

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2014-11-20 18:24:54
2014-11-20 18:24:54

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

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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.



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.


A fixed payment which is made annually is called an annuity.


A regular payment made to a person after they retire is called a pension


Yes. If the payment is made to the finnance company.


Paid up capital stock is that share capital for which investors or shareholders has made full payment to acquire them.


Answer:Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not pay out as a dividend (hence: "retained"). Retained earnings therefore increases with earnings, but decreases with dividends, since dividend is a distribution of earnings to the shareholders.


All cash payments made by the company.


can a finance company reposses your vehicle if you made your payment on the15 day


Dividends are payments made to shareholders (owners) of a company. Dividends can only be paid if overall income has been positive otherwise it payment would constitute a return of investment. On the Balance Sheet, dividends are listed in the Equity/Retained Earnings section.


There are several ways someone can make a payment to Chrysler financial. The payment may be mailed to the company or it can be made directly at their website.



The company that made Pokemon is a japanese company called GAME FREAK.


Payment made for the use of borrowed money is called interest. Interest expense is shown on an income statement as a non-operating expense.


A payment made that is someone or a company is not obliged or legally required to do so. It is usually done to retain the business of a specific customer.


If you don't honor the payment contract, yes. Remember, until you pay it off, THEY own it.


In most cases, a repossession can keep personal belongs for non payment. The company, however, must release them once payment is made.


Share holders and owners need the financial information to see that how company performing and if there is any improvement required it should be done while shareholders needs to see that how company performing whether they should invest more or take out investment already made.


Because if the company is ever unable to make it's preferred dividend payment, the amount rolls over for the next time. The company is not allowed to pay dividends or distributions on lower classes of shares until they catch up on the back payments owed to the preferred shareholders. Some classes of preferred don't have the cumulative feature and if the company misses a payment, the payment is lost and not made up. That is why preferred stock investors look for the cumulative feature. If a company hasn't paid in a long time and you buy the shares then the company decides to pay off the back interest you get all the past payments that are owed on the shares even though you just bought them, though after a while of non-payment it is not likely the company will ever catch up and will end up going belly up instead.


1. Prepaid Expenses:These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.Accrued Expenses:These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.Accounts Payable:When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the accounts payable till the actual payment is made to the vendors.


Justify and criticise the usual assumption made in finance literature, that the objective of a company is to maximise the wealth of its shareholders


The company that made the cute little Furby is called Hasbro.


a monthly periodic payment is a payment made each month at a specific time each month. This can either be a payment made to an individual such as an annuity payment, or a payment made from an individual such as a loan payment.


Shareholders (owners) appoint CEOs and VPs, and if any of them are taking the company in a direction that they believe is too risky or will prove unprofitable than they will act in the interest of the company and sort of veto whatever bad decision they believe the CEO or VP had made. This can also be just firing them.



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