alleryStart learning →What are the payments called that a company may make to its shareholders?
APremiums
BCoupons
CDividends
DAnnuities
Answer & Solution
Correct answer: C. Dividends
1. Owning stock can pay you in two ways: price gains and cash payouts.
2. A company that shares profits with shareholders pays dividends.
3. Coupons describe bond interest and premiums belong to insurance, the near-miss options.
_Source: "Saving and Investing: A Roadmap to Your Financial Security" (US SEC, public domain), section Investing_
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