Which of the Following Statements Is Correct for Stock Purchased

question 78

Multiple Choice

Which of the following statements is correct for stock purchased on the last day to trade "cum dividend"?

• A)a dividend will be declared on the next trading day.
• B)a dividend will be paid on the next trading day.
• C)the stock price should decline on the next trading day.
• D)the stock price should have declined on the previous trading day.

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Definitions:

Tariffs

Taxes imposed on imported goods and services, which are typically used by governments to protect domestic industries, raise revenue, or exert political leverage.

Trade Restrictions

Regulations or policies that countries adopt to limit the import and export of goods and services, often to protect domestic industries.

Secondary Effects

Unintended consequences of economic actions, which may manifest in areas not directly targeted by the initial action.

Unintended Consequences

Outcomes that occur as a result of actions or policies that were not anticipated or intended by the actors involved.