What is the term used for the payment made to stockholders from the profits of a company?

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The term that refers to the payment made to stockholders from the profits of a company is "dividend to stockholders." Dividends are distributions of a portion of a company's earnings, which are paid to shareholders as a reward for their investment in the company. These payments can be made in cash or additional shares, depending on the company's policy and the preference of the shareholders. Companies typically declare dividends as a way to share their profits, making them an appealing aspect of owning stock, as they can provide both income and potential for capital appreciation.

The other terms do not describe payments made to stockholders. For instance, a capital gain pertains to the increase in the value of an investment or asset when sold at a higher price than its purchase price. Interest payments are typically associated with loans or bonds, where the borrower pays interest to the lender. A margin call is a demand by a broker for an investor to deposit more money or securities into their margin account when the value of the securities falls below a certain threshold. Hence, dividend to stockholders is the appropriate and specific term for profit distributions to shareholders.

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