Question

An investor must purchase a stock before the _____ date to be assured of receiving a...

An investor must purchase a stock before the _____ date to be assured of receiving a declared dividend.

ex-dividend

record

payment

declaration

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans: Ex-dividend

  Ex-dividend indicates when a declared dividend belongs to the seller rather than the buyer. Investors should be aware of the ex-dividend date.

Investors who purchase shares on or after the ex-dividend date will not be paid that quarter’s dividend although they will be entitled to future dividends, assuming they still hold the shares.

Investors who purchase shares before the ex-dividend date will be paid that quarter’s dividend.The reason why the ex-dividend date is two days earlier than the record date is because it takes three days for a trade to settle for cash and shares to legally trade hands.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Part a On October 1, 2021, Helmsmith Corporation declared and issued a 10% common stock dividend....
Part a On October 1, 2021, Helmsmith Corporation declared and issued a 10% common stock dividend. Before this date, Helmsmith had 80,000 shares of $1 par common stock outstanding. The market price of Helmsmith Corporation’s common stock on the date of declaration was $10 per share. Required Show Helmsmith’s journal entries to record the common stock dividend on: 1) The date of declaration 2) The date of record 3) The date of distribution/payment
BrightBright ​Schools, Inc. is authorized to issue​ 200,000 shares of ​$22 par common stock. The company...
BrightBright ​Schools, Inc. is authorized to issue​ 200,000 shares of ​$22 par common stock. The company issued 78 comma 00078,000 shares at $ 6$6 per share. When the market price of common stock was $ 8$8 per​ share, BrightBright declared and distributed a 1010​% stock dividend.​ Later, BrightBright declared and paid a $ 0.30$0.30 per share cash dividend.Read the requirements LOADING... . Requirement 1. Journalize the declaration and the distribution of the stock dividend.​ (Record debits​ first, then credits. Select...
4. Which of the following is NOT an important date associated with dividends? a. Date of...
4. Which of the following is NOT an important date associated with dividends? a. Date of information b. Dividend payment date c. Declaration date d. Date of record
Which of the following determines which owners will be paid a dividend? Declaration date Payment date...
Which of the following determines which owners will be paid a dividend? Declaration date Payment date Year-end close date Record date
Following is a recent Giga Tech. press release: REDMOND, Wash.—Nov. 29, 2017 — Giga Tech. on...
Following is a recent Giga Tech. press release: REDMOND, Wash.—Nov. 29, 2017 — Giga Tech. on Wednesday announced that its board of directors declared a quarterly dividend of $0.15 per share. The dividend is payable March 8, 2018, to shareholders of record on Feb. 15, 2018. The ex-dividend date will be Feb. 14, 2018. Prepare the journal entries Giga Tech. used to record the declaration and payment of the cash dividend for its 8,300 million shares. (If no entry is...
Delta Motors Corporation has 100,000,000 authorized shares of $1 par value common stock. As of June...
Delta Motors Corporation has 100,000,000 authorized shares of $1 par value common stock. As of June 30, 20x8, there were 1,000,000 shares issued and outstanding. On June 30, 20x8, the board of directors declared a $.20 per share cash dividend to be paid on August 1, 20x8, to shareholders of record on July 15, 20x8. Prepare entries in journal form to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.
5. The financing provided for start-up, often high-risk, private business enterprises is called: A. Venture capital....
5. The financing provided for start-up, often high-risk, private business enterprises is called: A. Venture capital. B. Junk bonds. C. Flotation costs. D. Initial public offerings. E. Financial futures. 6. When a firm is operating with the optimal capital structure: I. the debt-equity ratio will also be optimal. II. the weighted average cost of capital will be at its minimal point. III. the required return on assets will be at its maximum point. IV. the increased benefit from additional debt...
Slaneders & Sons Company has 1,000,000 authorized shares of $20 par value common stock. As of...
Slaneders & Sons Company has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2012, there were 500,000 shares issued and outstanding. On June 30, 2012, the board of directors declared a $0.30 per share cash dividend to be paid on August 1, 2012. Instructions Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record and (c) payment date.
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015:    Common stock—$20 par...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015:    Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and    outstanding $ 900,000      Paid-in capital in excess of par value, common stock 70,000      Retained earnings 370,000      Total stockholders’ equity $ 1,340,000   In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend...
On which of the following dates does IBM stock price drop for the amount of IBM’s...
On which of the following dates does IBM stock price drop for the amount of IBM’s quarterly dividend? Announcement Date Ex Date Record Date Payment Date
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT