Dividend is the reward or return a
company gives to the shareholders for the money they had invested in its share
capital. It is somewhat similar to the interest
a borrower pays to the lender for the money lent, though in reality there
is a vast difference between both.
As generally there are two broad
categories of share capital, namely equity
and preference, the dividend payable
on these two categories is also classified into equity and preference dividend.
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