Profits of a firm that are distributed or given out to its investor are called -

A Dividends
B Equity
C Bonds
D None of these

Correct Answer: Dividends

A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividend - paying companies are typically eligible as long as they own the stock before the ex - dividend date. Dividends may be paid out as cash or in the form of additional stock.
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