Dividends are the distribution of profits to share owners according to the number of shares owned. this division will reduce retained earnings and cash available to customers company, but distribution of profits to owners is the main goal of a business. A number of the company may have a Reinvestment Plan Dividends (dividend reinvestment). This allows para shareholders to use their dividends wisely systematically to buy a small amount of shares that would normally be without commission. In some cases, they don't have to pay taxes on reinvestment of these dividends, but it is usually necessary pay commission.Â
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