Chapter 14, Problem 4CTCR

Summary Introduction

To determine: The ex-dividend date.

Introduction:

The two dates before the record date is termed as ex-dividend date.

If a shareholder purchases the stocks on or before the ex-dividend date, then the shareholder is entitled to receive the dividend payment. If a shareholder purchases on or after the ex-dividend date, then the shareholder will not be entitled to the next dividend payment; rather the seller gets the payment.