Question

Give one word / Term / phrase for each of the following statement :

The capital on which dividend is paid.

Answer 1

Paid up Capital

Explanation: A company declares dividend on the amount of money paid up by the shareholders. That is, dividend is declared on paid-up share capital. It represents the money received from the shareholders on the shares held by them. It is not necessary that every shareholder will pay the whole amount of called-up share capital; therefore, a company pays dividend on the amount of paid-up capital.