The Important Relationship Between the Ex-Dividend Date and the Record

question 27

Multiple Choice

The important relationship between the ex-dividend date and the record date is:

• A) it determines the timing of when the payment is made.
• B) the record date occurs before ex-dividend date allowing you to sell your stock and still get the dividend payment.
• C) 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.
• D) 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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Definitions:

Quantity Supplied

The amount of a good that producers are willing and able to sell at a particular price over a given period of time.

Rises

An increase or upward movement in a specific parameter or value, often used in financial and economic contexts.

Price Range

The difference between the highest and lowest prices in a given market during a specific period of time.

Supply

The total amount of a good or service available for purchase at any given price level in a given market.