A _______ is a payment made to shareholders that is proportional to the number of shares owned.
A
dividend
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B
rate
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C
interest
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D
profit
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Solution
The correct option is C dividend A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.
Dividends can be issued as cash payments, as shares of stock, or other property So, we can say that the dividend is a payment made to shareholders that is proportional to the number of shares owned.