Chapter 14, Problem 1QP

Summary Introduction

To determine: The stock worth on the date of April 19.

Introduction:

The two dates before the record date is termed as ex-dividend date. If the shareholder purchases the stocks on or before the ex-dividend date, then he is entitled to get the dividend payment; and if the shareholder purchases on or after the ex-dividend date, then he will not be allowed to the next dividend payment rather the seller gets the payment.

The stocks will get the ex-dividend position if the person gets the dividends from the company.