XYZ Corporation declares a cash dividend with a record date of Wednesday, March 18. Under T+1 settlement, what is the ex-dividend date?

Why C — Wednesday, March 18

Under T+1 settlement, the ex-dividend date is the same as the record date. This is because with T+1 settlement, a trade executed on the business day before the record date would settle on the record date, meaning the buyer would be the holder of record. A buyer purchasing on the record date itself would not settle until the next business day, making them too late to be the holder of record. Therefore, the ex-date and record date align under T+1 settlement rules as set by the exchanges.