The firm will pay the dividend to all shareholders who are registered owners on a specific date,set by the board,called the:
A)declaration date.
B)record date.
C)distribution date.
D)ex-dividend date.

Question

Quizplus · Accepted Answer

The record date is the specific date set by the board on which the firm will pay the dividend to all shareholders who are registered owners. The declaration date is the date on which the board announces the dividend amount and distribution date. The distribution date is the date on which the dividend is actually paid to shareholders. The ex-dividend date is the date on which the stock begins trading without the value of the upcoming dividend. Therefore, the best choice is B, the record date.

The Firm Will Pay the Dividend to All Shareholders Who