Wednesday, September 7, 2016

Dividend-Definition

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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