Dividend

Market Terms

We don't know everything about the markets.  We're just devoted to learning.  Taken from those smarter than ourselves, here's how we define Dividend.

A payment to stockholders who own a specific stock.  Some companies distribute part of their earnings directly to shareholders in the form of money or additional stock.  This payment is referred to a dividend.  Not all companies pay out dividends.  They’re a reward usually taken from the net profits and approved by a board to reward stock owners for their investment.