Dividend

A company can also pay shareholders dividends, but these payments must come from available profits. Dividends are not guaranteed simply because someone owns shares.

Shareholders may have voting rights and may receive dividends when these are declared, so future profits may be shared among more owners.

In a company, shareholders may receive dividends — payments from profits — and their shares may rise in value. However, expansion costs money and success is uncertain. Owners could lose money if the extra sales do not cover the extra costs.