How To Calculate Dividends
Dividends are a portion of a company's profit that is paid out to each shareholder, in addition to any gains a shareholder gets when the price of the company's stock increases.
Formula:
Dividends = annual net income - net retained earnings
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.