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Dividends are how an company owner gets the profits from his investment. A salary is how a worker gets paid. In small companies, these may be the same person, b
by sergiosgc 7y ago
Dividends are how an company owner gets the profits from his investment. A salary is how a worker gets paid. In small companies, these may be the same person, but the nature of the financial flow does not change.
When a company requires more cash, in times of need, it can issue debt or raise capital. Capital is usually paid last, in the pecking order. If government is lending to companies, it is reasonable to require them to avoid depleting its cash reserves paying capital.