Explain Why an Ex-Dividend Date Is a Required Step in the Dividend

question 6

Essay

Explain why an ex-dividend date is a required step in the dividend payout process.

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Definitions:

Definite Time

A specific point or period in time that is clearly defined or determined.

Electronic Transactions

The process of conducting financial or administrative transactions digitally, using technology such as the internet, electronic data interchange, or email.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to the order of a person.

Promissory Notes

A written agreement to pay a specified amount of money, either on demand or at a defined future date.