Word of the Day | Dividends


Word of the Day | Dividends

"Dividends" refer to a portion of a company's profits that are distributed to its shareholders.

When you own shares in a company, you become a part-owner, and as a result, you may receive a share of the company's earnings in the form of dividends.

Think of it like receiving a piece of the profits from a successful business that you have invested in. Just like how the owners of a business may decide to distribute a portion of their profits among themselves, companies distribute dividends to their shareholders as a way to reward them for their investment and ownership.

Dividends are usually paid out on a regular basis, such as quarterly, semi-annually, or annually. The amount of dividend you receive depends on the number of shares you own and the company's dividend policy.

DividendsSome companies may choose to reinvest their profits back into the business rather than distributing them as dividends. In simpler terms, dividends are a way for companies to share their profits with shareholders as a form of return on their investment. It's like receiving a share of the company's success in the form of regular payments.

https://www.dbm.academy/faq for more blockchain vocabulary.