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Which Statement Is True

question 170

Multiple Choice

Which statement is true?


Definitions:

Cum-dividend Basis

A way of pricing shares where the buyer is entitled to receive a declared dividend, as the purchase is made before the ex-dividend date.

Dividend

A payout made by a corporation to its shareholders, usually as a distribution of profits.

Parent Company

A company that owns more than half of another company's stock and usually has a significant influence over it, often holding a controlling interest.

Constitution

The system of fundamental principles or established precedents according to which a state or other organization is governed.

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