To Receive the Current Quarterly Dividend, When Must an Investor

question 32

Multiple Choice

To receive the current quarterly dividend, when must an investor buy shares in a company?

• A) Before the record date.
• B) Before the ex-dividend date.
• C) Before the cum-dividend date.
• D) Before the transaction date.
• E) Before the settlement date.

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Definitions:

Transfer Payments

Payments made by governments to individuals without any goods or services being received in return, such as welfare, social security, and unemployment benefits.

Federal Budget Deficit

The amount by which a government's expenditures exceed its tax revenues over a specific fiscal period, leading to borrowing or debt accumulation.

Economic Growth

Growth in the inflation-corrected value of goods and services that an economy outputs over time.

Social Security

The U.S. social insurance program financed by a federal payroll tax that provides disability, retirement, and death benefits.