What is dividend?Dividend
Part of a company's profit paid out to shareholders according to how many shares they hold.
Learn “dividend” in an animated lesson
- Arbitrage StrategiesPut-Call Parity Arbitrage
There's an "iron law" linking a call and a put with the same strike. When prices stray from it, combine three legs and the payoff at expiry is a flat line.
- Stock BasicsDividends and Ex-Dividend Dates
When a company pays a dividend, the price is "cut" by that amount on the ex-dividend date. See why a dividend isn't free money, and why bonus shares don't change total value.
- Stock BasicsWhat Is a Stock?
Slice a company into many small pieces and each piece is one share. Buy shares and you own a small part of the company.
Related terms
See how “dividend” works for yourself with an animation you can drag and play.
Go to “Put-Call Parity Arbitrage”