When Stock Is Sold After the Dividend Is Declared but Prior

question 103

True/False

When stock is sold after the dividend is declared but prior to the record date,the buyer must recognize as income the dividend received,rather than a recovery of the amount of the dividend that is included in the price of the stock.

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Definitions:

Discrete Random Variable

A variable that takes on a countable number of distinct and separate values, often resulting from a counting process.

Outcomes

The results or consequences of actions or experiments that can be measured or observed.

Continuous Intervals

Ranges in mathematics and statistics without any breaks or discrete jumps, often used in calculations involving real numbers.

Real Numbers

A set of numbers that include both rational and irrational numbers, representing all possible magnitude and quantity values.