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Dividend:
The word "dividend" comes from the Latin word "dividendum" ("thing to be divided").
Any amount which is paid by the company to its shareholder is called dividend. This dividend is the part of the accumulated profit paid to share holder. Whenever the company earn profit or any kind of surplus its two uses either invest further or distributed among shareholders, and company give this profit to shareholders in the shape of money or share.
Such amount which is paid by the company to its shareholders is called dividend. A dividend allocated fix amount among the shareholder per share. Shareholders receive dividend out of profit. Some company’s dividend is not as a expense out like JOINT STOCK companies. This type of companies pay dividend to its shareholders after paying the TAX. PUBLIC companies paid dividend to their shareholders in some special proportions.
Mostly companies pay dividend according to their member’s activities, but these are PRE TAX payments.
Consumers' cooperatives and shares in the company either newly created shares or existing shares bought in the market. Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder.
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