What Does the Term Record Date for Dividends Refer To

question 39

Multiple Choice

What does the term Record Date for dividends refer to?

• A) The date on which the names of the company owners who will receive dividends appear in the company share register.
• B) The date when the financial position of the company is assessed to compute the dividend payable.
• C) The date that the auditors sign their release of the company's financial statements.
• D) The date that the company auditors authorize the dividend payout.
• E) The date on which the quoted share price excludes the accrued dividend.

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Definitions:

Nondepository Financial Institution

Institutions that do not accept traditional demand deposits but instead offer financial products such as mutual funds, insurance, and securities.

Insurance Company

A financial institution that provides coverage, compensating financial losses during events like accidents, theft, or natural disasters, in exchange for premiums.

Pension Fund

A type of investment pool established for the purpose of managing and investing collected retirement savings for members.

Common Stocks

Equity securities that represent ownership in a corporation, entitling holders to dividends and, in most cases, voting rights.