n NISM Certifications
XV NISM Series XV
Medium

The portion of earnings distributed to shareholders by a company is called:

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Cash Dividend

    Correct answer

  2. B

    Stock Dividend

  3. C

    Bonus Shares

  4. D

    Rights Issue

Why this is the answer

A cash dividend represents the distribution of a company’s earnings to shareholders in monetary form. Stock dividends and bonus shares involve issuing additional shares, while rights issues offer shareholders the option to buy more shares.

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