Question

Part of companies earning of profit which is paid out to shareholders is known as

Answer 1

Dividend is the part of the company's earnings which is paid out to the shareholders. Sources of Dividend: 1) Profits of the company for the current financial year, or for the previous financial years and remaining undistributed profits or both. 2) Moneys provided by central govt. Or state govt. In pursuance of a guarantee given by it.