Difference between revisions of "Retained earnings"

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'''Retained earnings''' refers to [[income]] that is retained by the company for internal use rather than paid out to shareholders in the form of [[dividend | dividends]]. Companies with high growth rates tend to retain more of their earnings so they can sustain their growth.
 
'''Retained earnings''' refers to [[income]] that is retained by the company for internal use rather than paid out to shareholders in the form of [[dividend | dividends]]. Companies with high growth rates tend to retain more of their earnings so they can sustain their growth.
  
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[[Category:Economics]]
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[[Category:Stock market]]

Revision as of 05:30, January 3, 2008

Retained earnings refers to income that is retained by the company for internal use rather than paid out to shareholders in the form of dividends. Companies with high growth rates tend to retain more of their earnings so they can sustain their growth.