Discipline: Economics

A Dividend is a payment that a corporation makes to its shareholders from its profits. Owning the shares of a corporation, the shareholders have a right to its profits in proportion to the ownership the shares they hold represent.

Corporations may pay dividends in the form of cash, new shares, or property. When a corporations makes the dividend payment in the form of cash, the shareholder must pay income taxes on it. This is called double taxation.


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