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Dividends

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Amina Stehr

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2y ago
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Q: What is a stockholders shares of a company's profits?
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Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


What is the treatment of proposed dividend?

A dividend is a stockhder's share of the profits from the company. This is paid pro-rata to the stockholders in either cash or more shares.


A corporation gives out its profits as dividends paid to its?

Stockholders


What is a power of stockholders?

Stockholders can sell their shares in the company at any time


What is one of the powers of stockholders?

stockholders can sell their shares in the company at any time.


What is a share of profits distributed to stockholders?

dividends


Profits of a corporation that is distributed to its stockholders?

dividends


Which of following best represents the most direct power that stockholders have over the operations of a company?

Stockholders can sell their shares in the company at any time.


Who protects the stockholders' interests?

The stockholders, who are the owners of a corporation, are served by the board of directors of that corporation. The owners of the corporation (the stockholders) have installed the board members to run the corporation and they, the stockholders, expect the board to operate the corporation in a way that is profitable. Profits are returned to the stockholders in the form of dividends, and the stockholders profits are a direct function of the number of shares each one holds. The shareholders pay the board members large sums of money (and include generous compensation packages, including stock options) for their efforts. The stockholders have a reasonable expectation that the board members will do their best to run the corporation smoothly and will make money, so a corporation's board of directors is tasked with looking out for the interests of the stockholders, who are the owners of the corporation.


Who are stockholders in a corporation?

Stockholders are people who have purchased (or have been granted) shares of equity in the ownership of the company.


What most accurately describes the power of stockholders?

stockholders can sell their shares in the company at any time.


What is the difference between preferred and common stockholders?

Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.