Dividends are the firm's after tax profits that are distributed to stockholders.
A person or legal organization registered by a corporation as the legitimate owner of shares of the share capital of a public or private corporation is referred to as a shareholder. Members of a corporation are sometimes used to refer to shareholders.
Any individual, business, or organization that has stock in a corporation is referred to as a shareholder. A shareholder of a corporation may own just one share. As residual claimants on a company's profits, shareholders are liable for capital gains (or losses) and/or dividend payments.
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