Multiple Choice it determines the timing of when the payment is made. the record date occurs before ex-dividend date allowing you to sell your stock and still get the dividend payment.
Multiple Choice it determines the timing of when the payment is made. the record date occurs before ex-dividend date allowing you to sell your stock and still get the dividend payment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please explain with details also explain wrong options
Transcribed Image Text:The important relationship between the ex-dividend date and the record date is:
Multiple Choice
O
it determines the timing of when the payment is made.
the record date occurs before ex-dividend date allowing you to sell your stock and still get the dividend payment.
the ex-dividend date occurs two business days before the date of record, if you purchase the stock before this date you are entitled to the dividend.
if you hold your stock past the record date and do not sell before the ex-dividend date then you will be taxed at the capital gain rate.
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