Dividend Payout - When a company has done well in the current
financial year it is said to have made a profit. People who bought shares
in this company are investors. The company has the option to reinvest
some of the profit in the form of retained earnings, and then, it is
able to ?share? the good fortune with its investors. The amount
given out to the shareholders is referred to as ?dividends?. Each
share is given a specific dollar amount that it will be allotted, thus,
the more shares you own, the more money you would receive as dividends.