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Series 7 practice questioneasyRecord Date and Payment Date

Which date determines who is entitled to receive a declared dividend?

  1. AThe declaration date
  2. BThe record date✓ Correct answer
  3. CThe ex-dividend date
  4. DThe payment date
Explanation

Why B — The record date

The record date is the date on which a shareholder must be registered as a holder of record on the company's books to be entitled to receive a declared dividend. The declaration date is when the dividend is announced, the ex-dividend date is when the stock begins trading without the dividend, and the payment date is when the dividend is actually distributed. The record date is the key date for determining dividend entitlement.

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