A Dividend Is Declared on January 1, Has a With-Dividend

question 50

Multiple Choice

A dividend is declared on January 1, has a with-dividend date of January 19, and a record date of January 26.Which of the following shareholders will not receive the dividend?

• A)A shareholder who purchases on December 31.
• B)A shareholder who purchases on January 10.
• C)A shareholder who purchases on January 19.
• D)A shareholder who purchases on January 24.

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies or supports small companies that wish to expand but do not have access to equities markets.

Board of Directors

A group of individuals elected to represent shareholders and make key decisions on governance and policy direction for an organization.

Financial Institution

Organizations that provide financial services to its clients or members, including banks, credit unions, stock brokerages, and insurance companies.

Initial Public Offering

The process by which a private company becomes publicly traded by offering its shares to the public for the first time.