Brokers have agreed to cut off sales for dividend purposes two days prior to the date of record to accommodate a paperwork lag. Investors who purchase a stock after the ex-dividend date are entitled receive the dividend, while investors who purchase the stock before the ex-dividend date are not entitled to receive the dividend.

Question

Quizplus · Accepted Answer

Investors who purchase the stock before the ex-dividend date are entitled to receive the dividend, while investors who purchase the stock after the ex-dividend date are not entitled to receive the dividend.

Brokers Have Agreed to Cut Off Sales for Dividend Purposes