Profits of a firm that are distributed or given out to its investors are called __
A
Bonds
B
Equity
C
Dividends
D
None of these
Correct Answer: Dividends
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders. Dividends can provide stable income and raise morale among shareholders.