SIE practice questionmediumDividend Dates
To receive a declared stock dividend, an investor must purchase the stock before which date?
- AEx-dividend date✓ Correct answer
- BDeclaration date
- CPayment date
- DRecord date
Explanation
Why A — Ex-dividend date
To receive a dividend, an investor must purchase the stock before the ex-dividend date. On the ex-date, the stock trades without ("ex") the dividend. The key dates in order are: declaration date (board announces), ex-dividend date (one business day before record date under T+1 settlement), record date (must be on the books), and payment date (dividend paid). Buying on or after the ex-date means the seller, not the buyer, gets the dividend.
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