Question

5. You would like to own shares that have a record date of Friday 19 March 2018. What is the last date that you can purchase the share and still receive the dividend?

Answer 1

Last date for purchasing the shares to receive dividend is 16 March 2018

Explanation;

As per information of the question, it is clear that record date is 19 March 2018 hence ex-dividend date will be 2 days before this record date, that will be 17 March 2018. So a shareholder must purchase shares before this ex-dividend date hence shareholder must purchase shares before 17 March 2018. Thus last date to purchase shares will be 16 March 2018.

Record date is the date on which the company will finalize the list of investors those are qualified for receiving dividend.

So, if a shareholder purchase shares on or after 17 March 2018 then shareholder will not be entitled for dividend because 17 March is ex-dividend date hence shares purchased on or after this ex-dividend date (17 march 2018) will not be qualified for dividend.