Term of the Day dividend A share of the after-tax profit of a company, distributed to its shareholdersaccording to the number and class of shares held by them. Smaller companiestypically distribute dividends at the end of an accounting year, whereas larger, publicly held companies usually distribute it every quarter. The amount and timing of the dividend is decided by the board of directors, who also determine whether it is paid out of current earnings or the past earnings kept as reserve.Holders of preferred stock receive dividend at a fixed rate and are paid first. Holders of ordinary shares are entitled to receive any amount of dividend, based on the level of profit and the company's need for cash for expansion or other purposes. Corporate legislation ... Learn more about this term Usage Example As an investor in Ford, I received a dividend of $0.25 a share at the end of the first quarter after Ford drastically exceeded its earnings estimates.

Friday Quiz Challenge Test your knowledge of this week's terms Question: Since I left my job on my own terms and was not fired, I was not eligible for... Choose the Right Answer: (A) Ponzi scheme (B) unemployment insurance (C) ad hoc (D) labor force

Featured Article Accounting Practices Needed When Starting a Business Every small business needs to account by law for the profit or loss that it makes over time. Not only is this valuable information for the business owner, but... Read this article

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