If You Are a Stock Trader and Your Trading Proceeds

question 48

Multiple Choice

If you are a stock trader and your trading proceeds are not subject to taxes,what strategy below would work best if you expected that the drop in share price after the ex-dividend date is less than the amount of the dividend?

• A) buy the shares immediately before the ex-dividend date and then sell them immediately after the ex-dividend date
• B) sell the shares immediately before the ex-dividend date and then buy them back immediately after the ex-dividend date
• C) buy the shares immediately before the ex-dividend date and then buy more of them immediately after the ex-dividend date
• D) none of the above

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