Profits of a firm that are distributed or given out to its investors are called
A
Mortgages
B
Bonds
C
Equity
D
Dividends
Correct Answer: Dividends
Stock or scrip dividends are those paid out in the form of additional shares of the issuing corporation, or another corporation (such as its subsidiary corporation). They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares).