Which corporation has capital stock divided into shares and is authorized to distribute dividends?

A stock corporation is defined by its structure, where capital stock is divided into shares. Each share represents ownership of a portion of the corporation, and shareholders have the right to receive dividends based on the number of shares they hold. The fundamental purpose of a stock corporation is to raise capital through the sale of shares, allowing it to grow and invest in new opportunities while rewarding shareholders through dividends.

In contrast, a non-stock corporation does not issue shares or distribute dividends; it may operate for a non-profit purpose. Both close and open corporations do involve shares of stock, but their primary characteristics revolve around the number of shareholders and the ease of transfer of shares, not specifically the distribution of dividends. Therefore, while they might have shares, it is the stock corporation specifically that is structured to actively engage in distributing dividends to its shareholders as a primary feature of its operation.