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In a corporation, do shareholders earn money?

How do shareholders work? What are dividend?

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Answer #1

Shareholders hold “shares” which represent a percentage ownership fo the business.

Dividends are a percentage of the profits of the company that are paid to shareholders in proportion to the number of shares that they own.

Not all companies pay dividends, as sometimes they take any profits and re-invest it back in the business. A good example of this, is Apple who just started paying dividends last year after never paying them in the past, even as they were highly profitable.

Answer #2

Thanks! :) Is the last part called retained earnings?

Answer #3

Not sure, I’m at the limit of my knowledge with the answer

Answer #4

No, shareholders hold a share of the company. According to wiki, one of the rights that shareholders may have is “The right to dividends if they are declared.” http://www.checkcashingusa.com/check-cashing/

Answer #5

“What are dividend?” In simple terms, it is the payment made to a shareholder. The payment is made out of the company’s profits.

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