Question

issuing share out of profit is called​

Answer 1

A dividend is a distribution of profits by a corporation to its shareholders. ... Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase.

Answer 2

What Are Issued Shares?

Issued shares are the authorized shares sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors or the general public, as shown in the company’s annual report. Issued shares include the stock a company which are not included in this figure.

A company issues a share only once; after that, investors may sell it to another investor. When companies buy back their own shares, the shares remain listed as issued, even though they become classified as "treasury shares," because the company may resell them. For a small, closely held corporation, the original owners may hold all of the issued shares.

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