The Date on Which the Board of Directors Authorizes the Dividend

question 68

Multiple Choice

The date on which the board of directors authorizes the dividend is the:

• A)declaration date.
• B)distribution date.
• C)record date.
• D)ex-dividend date.

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Definitions:

Clearinghouse

Established by exchanges to facilitate transfer of securities resulting from trades. For options and futures contracts, the clearinghouse may interpose itself as a middleman between two traders.

Taxation

The process whereby authorities impose financial charges on individuals or legal entities, which can have implications for investment decisions.

Futures Trading

Involves buying and selling futures contracts which are agreements to buy or sell an asset at a future date for a price that is decided now.

Cumulative Year-End

Refers to the aggregate total of something such as earnings or dividends at the end of a fiscal year.