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Dividend

A dividend is a distribution a company may make to shareholders, commonly from profits or accumulated earnings. Dividends are not guaranteed and may be increased, reduced or stopped depending on the company and the rights attached to the shares.

Why it matters to you

If a tokenized product represents actual shares or provides economic exposure to them, investors should understand whether they are entitled to dividends and how those payments are passed through. A token referencing a stock does not automatically provide exactly the same rights as directly owning that company's shares.

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