Dividend
A dividend is the share of profits that a company decides to distribute to its shareholders, in proportion to the shares held. It may be paid in cash or in the form of new shares.
The distribution of the dividend, its amount and its frequency are decided by the company’s bodies and are not guaranteed: a company may reduce or suspend the dividend, for example, in the event of negative results.
The concept of a dividend is typical of shares and traditional financial instruments. It should not be confused with the rewards of some activities linked to crypto-assets, such as staking, which have a different nature and functioning and do not constitute guaranteed interest or dividends.
Disclaimer: this entry is for information purposes only and does not constitute investment advice or a recommendation.