Question

Which of the following determines which owners will be paid a dividend?

		Declaration date
		Payment date
		Year-end close date
		Record date

Answer 1

Which of the following determines which owners will be paid a dividend -

Record date

Explanation -

In case of dividend, there are many dates i.e. declaration date, record date and payment date.

Declaration date shows the rate at which dividend will be paid. Record date used to determine which shareholders are entitled to a corporate dividend. Payment date is that date on which dividend is finally paid.

So in case of which owners dividend will be paid the record date is relevant.