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They are called dividends.

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13y ago

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What is the definition of dividend?

In finance, the word "dividend" refers to a portion of money that is paid at regular individuals by a company to its shareholders. In this way, the shareholders gain a piece of the company's profits.


Dividend Payments?

Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.


What is shareholders?

A shareholder is some one who invests money in a company or buys part of your company to receive part of the profits in the form of shares.


Why are retained earnings reported as part of shareholders' equity?

Retained earnings is part of shareholders' equity. It is considered part of equity because it represents the profits that are retained in the company to fund growth. If a company would have paid out all past profits as dividend, then total assets (cash) would be lower, and retained earnings would have a zero balance. Because net income is computed after claims of third parties (interest, wages, etc), there is no claim of third parties on profits that are retained. So, retained earnings are not a liability.


What do companies do with their profits?

One thing public companies do with their profits is pay dividends to shareholders. For example it appears Proctor and Gamble paid approximately $1.68/share over the past year for 2.92 billion shares. That's about $5B dollars out of $13.4B in profits. I do not know what happened to the other $8.4 billion. Is research part of expenses ?


Are shareholders owners of company?

The company is not always the property of the shareholders. The company is in part the property of the shareholders if it is a publicly traded company.


Do you get paid if a composer writes your song?

Yes you do. But a composer gets part of the profits.


What do companies do with their profit?

One thing public companies do with their profits is pay dividends to shareholders. For example it appears Proctor and Gamble paid approximately $1.68/share over the past year for 2.92 billion shares. That's about $5B dollars out of $13.4B in profits. I do not know what happened to the other $8.4 billion. Is research part of expenses ?


How did the actors in the globe theatre get paid?

The hirelings were day laborers, paid a set amount for each performance. The shareholders, permanent company members, split the profits after all of the expenses were paid. The Burbages got two shares each. Shakespeare and the top comic got a share and half apiece, and the rest got one share. Depending on the period, there were ten to fourteen members in the company. Some of the troupe, including Shakespeare and the Burbages, also received shares in the rent the players paid to the Globe as part of their expenses.


What is the difference between Retained earning and Dividends?

Retained earning means: Not distributing profits to stake holders and keeping the profits of a company for the use of the business entity either for working capital or for new projects etc., Dividends means: Distribution of profits earned by a company to the stakeholders ( loosing funds earned as profits to stake holders )


Why did people invest in stock joint companies?

Investors were promised part of the profits. >niece


What if retained earnings do not match net income?

Retained earning and net income don't match in case where some part of net income is paid to shareholders in form of dividend.