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What is a dividend? »Its definition and meaning

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In Latin it is known dividendus, in the case of mathematics the dividend is the number or quantity that will be divided between one and the other. In dividing at least one of the four arithmetic operations, we seek to find the content of the dividend by calling the result of the equation as a quotient. An example of a dividend is the following:

If 16 is divided into 2 (16/2), we have 2 as a divisor and number 16 as a dividend, the quotient that would be the result of the operation in this case would be 8. Another way to show it would be; than the dividend being equal to the quotient times the divisor plus the remainder: 16 = 8 × 2 + 0.

In the chaos of finances and the economy, the dividend is known as the return on investment that the company delivers to its shareholders depending on the number of shares each owns, this is paid with materials or resources originating from the profits generated by the companies during a given period paying both in money and in more shares.

The active dividend, also, is known as a portion of the benefit obtained by a certain commercial company, which is distributed among the belonging partners, according to the agreements of their social bodies, to be more explicit, this would be a credit that each member obtains a time it is distributed in equal amounts among the members. This procedure is carried out once a year, when an account closing is delivered on the last day of the calendar year, however this modality may change according to the needs of the partners and their statutes.

In the case of the passive dividend, it is the credit of a person, finances that a company or group can hold against another partner who is not willing to deliver the total of the shares in their possession, in this case until the shareholder does not pay Passive dividends, the right to vote in General Meetings belonging to said company cannot be returned, its subscription is not renewable and neither is the receipt of its dividends, in addition the delay of this partner must be compensated in a monetary way for the delay as an interest.