n NISM Certifications
XV NISM Series XV
Medium

The portion of earnings paid to shareholders by companies is called ______.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Special Incentive

  2. B

    Stock Dividend

  3. Cash Dividend

    Correct answer

  4. D

    Bonus Issue

Why this is the answer

Cash dividends are paid directly to shareholders. Stock dividends (bonus shares) are additional shares given instead of cash, and do not represent immediate cash outflow.

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