The amount of a company's profits distributed to ordinary shareholders is called?

The amount of a company's profits distributed to ordinary shareholders is referred to as a dividend. This distribution represents a portion of the company's earnings allocated to its shareholders based on the number of shares they own. Dividends are an important aspect of investing, as they provide a direct return on investment in the form of cash or additional shares.

The concept of dividends is tied to a company's profitability; when a company performs well and generates profits, it may choose to share some of these earnings with its shareholders to reward their investment. This practice is common among publicly traded companies, which may announce dividend payments on a regular schedule, typically quarterly.

In contrast, par value refers to the nominal value of a share as stated in the corporate charter, which does not directly relate to the distribution of profits. The term "return" can be misleading, as it is more general and encompasses all types of returns on investment, not just those in the form of dividends. Share stock is not a term commonly used to describe profit distributions, but rather refers to ownership points in a company. Thus, the clear definition and common understanding of dividends make this the appropriate choice to describe the profits distributed to ordinary shareholders.