Dividends are proceeds from the profits earned by a company. Dividends are determined by the management of a company, who are not obliged to issue any dividends, even if the business is profitable.
Usually, a proportion of a company's profits will be distributed as a dividend with the remainder being retained for investment purposes to grow the business or maintain its current position in the market.
Contributed by: Ralph Windsor
Usually, a proportion of a company's profits will be distributed as a dividend with the remainder being retained for investment purposes to grow the business or maintain its current position in the market.
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