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2. Do dividends require a firm to make direct payments to its shareholders? Do capital gains...

2. Do dividends require a firm to make direct payments to its shareholders? Do capital gains require a firm to make direct payments to its shareholders?
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Yes, Dividends are direct payments by a firms to its stockholders, but shareholders cann't force the firm to pay the dividends and it depends on the policy of the firms to decide wether or n't to pay dividend at any pint in time.

No, capital gains don't require a firm to make direct payments to its shareholders. As capital gain is the appreciation in the value of the stock, and so it has nothing to do with firms paying any amount.

If you don't understand anything, then comment, I will revert back on the same.

And If you liked the answer then please do review the same. Thanks :)

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