If on January 3, 2012, a Company Declares a Dividend

question 58

True/False

If on January 3, 2012, a company declares a dividend of $1.50 per share, payable on January 31, 2012, to holders of record on January 19, then the price of the stock should drop by approximately $1.50 on January 17, which is the ex-dividend date.

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Definitions:

Balance Deficit

A situation in financial accounts, particularly in national accounts, where total outflows exceed total inflows.

Capital and Financial Account

A component of a nation's balance of payments that covers the transfer of capital and financial assets across international borders.

Balance Surplus

An economic situation where the income or supply exceeds the expenditure or demand, leading to a surplus.

Balance Deficit

The economic condition where total expenditures exceed total revenues in a given period, often in reference to national budgets or trade balances.