Dividends questions and answers

Company earns profits and that money is put for the following use:-…
Dividend policy is an element of the financial management. It helps the company in capital markets...
The external factors which determine the dividend policy are as follows:-
Stable dividend policy - This is also called Regular policy in this company pays dividend at fixed rate, and maintains it for long time even the profit fluctuates…
Cash dividends are the first form in which dividends are paid out in currency, usually by check or electronic cash….
Bonus shares are the shares which are allotted to the existing shareholders without receiving any additional payment from them…
The disadvantages of issuing bonus shares are:…
The advantages of issuing bonus shares to the shareholders and creditors are as follows:-
Securities and Exchange Board of India (SEBI) guidelines are to be followed for issue of bonus shares:-