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Meaning of dividend

 

 

 

Dividend

 

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Business glossary

 

Meaning of term dividend :

 

A dividend is payment of a share of a firm's profits to the shareholders. The shareholders are the owners of the business and so are entitled to a share of the profits. Some of the profits will be reinvested in the firm and some will usually be paid as a dividend to shareholders. The dividend is usually expressed as an amount per share.

 

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