Question

Dividend is always paid on the ______ of a share.

Options

• Market value

• Face value

• Investment

• Dividend

Answer 1

Dividend is always paid on the face value of a share.

Explanation:

Dividend is declared and expressed as a percentage of a share’s face (nominal) value, so the company pays dividend based on the face value regardless of the share’s market price e.g., 10% on a ₹ 100 face-value share = ₹ 10 per share.