How is the share dividend calculated?
When a company earns income after paying tax (profit after tax) they pay part of this profit to its shareholders. That portion given to the shareholders is called dividend. The dividend per share is arrived at by dividing the quantity of money that the company has set aside by the number of shares the company has, but before you receive the dividend, there is a withholding tax of 10percent, so you get 90percent of the amount that is declared as dividend. How can one become a shareholder of a company? There are three ways one can become a shareholder in a company. Firstly, during the process of formation, the founders of the company can invite you to invest in the company; in this case, you become an original subscriber of the shares. You put down some money which they will use, together with that of other investors to start the company, so you become a shareholder automatically. Secondly, the company can invite some individuals to be in the company (what we call private placement). If
