A part of public company’s profit belonging to the shareholders is

A part of public company’s profit belonging to the shareholders is

  1. public issue
  2. bonus
  3. right issue
  4. dividends ✓

Explanation

Dividends are the portion of profit distributed to shareholders. When a company makes profit, directors decide how much to keep for growth and how much to pay out to owners.

Public issue is selling new shares to the public. Rights issue offers existing shareholders chance to buy more shares. Bonus shares are free shares given from reserves, not cash profit distributions.

Remember: Dividends = cash payment of profits to shareholders. It’s their reward for investing in the company.