Question

Dividends are a cash flow from (A) a firm to the financial markets. (B) a shareholder...

Dividends are a cash flow from

(A) a firm to the financial markets.

(B) a shareholder to a firm.

(C) the government to a shareholder.

(D) the financial markets to a firm.

(E) a firm to the government.

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Answer #1

Financial markets are the places where shares of the companies are traded. Usually those are exchanges where buyers and sellers of shares meet and trade. Dividends are also paid through these markets.

Hence, correct option is A. a firm to the financial markets.

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