Dividend is the portion of a company's profit. Just as the name is described, the profit is divided based on the amount of shares you bought.
The higher the shares, the more the dividend and vice versa.
Other than the distribution of a company's profit, dividend can simply be classified as dividing spoils or sharing things amongst people. This makes it easier to understand.
With dividend, the sharing ratio is accurate. It is not biased or based on relationship but on the contract.
Once the profit is decided, you can determine your profit be based on the ratio of shares you acquired.
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