What is the difference between stocks and dividends?
shares and dividends are closely related; Shares are proof of business ownership, such as a company or cooperative enterprise, while dividends are made by the company to those who own shares or shareholders. Shares can be purchased on the stock market if the company is publicly held; Stocks in private companies are also sometimes available, but not at any of the public stock markets. Buyers of private companies may have to meet special requirements set by the company.
Investors are available in virtually two different types of stocks: common and preferred. Ordinary shares are the type of most issued shares; Many companies do not issue preferred shares at all. The ordinary shares generally carry voting rights in the organization, usually in terms of significance for the company and also for members of the Board of Directors, although different classes of the ordinary shares, as defined by the vocational law.
those holding preferred shares generally do not have voting rights but generally are ZranDividend has been taught throughout the life of society. If profits are low or non -existent, preferred shareholder dividends are paid from the company's reserves. Dividends of joint shareholders are not guaranteed and may occur years when joint shareholders do not receive any dividend. In very good years, however, it is possible for ordinary shares to gain larger dividends than preferred shares.
shareholders carry a greater risk than bond holders and other creditors of the company, as well as more, because if a company fails, sharing and dividends can increase value. However, if the company fails well and must be destroyed, ordinary shareholders often lose all their investments, because all the company's debts are better than the ordinary share- that is, they must be paid before shareholders. Preferred shareholders in general share the same risk as ordinary shareholders, even if POKUD After paying bond holders and other creditors, money is left, preferred shareholders will be paid first.
When companies calculate their profits, they also decide how to destroy them. There are a number of areas in which companies can invest their profits, but one of the main such areas is the division of profits among shareholders, although most businesses do not distribute all profits to shareholders. This is the simplest, it is done by a company that decides how much profit to be distributed as dividends, and then divide it among all shares issuing dividend payments to these shareholders.
Historically, shares and dividends were the main source of income for US pensioners whose pension plans and other programs for pension savings must find reliable investments. When they buy stocks, generals limit their purchases to established companies whose shares are listed on one of the main exchanges. Individuals who invest in the stock market must be carefulFor attention to their record, when they sell shares, because the revenues obtained from shares and dividends are treated differently for tax purposes. Their inadvertently, they will generally lead to higher tax liability for the taxpayer.