You purchased 400 shares of Gamma, Inc. stock on September 11. On September 12, you purchased another 200 shares and then on September 14 you purchased another 100 shares of Gamma stock. Gamma declared a dividend of $1.40 per share on August 25 to holders of record on Friday, September 15. The dividend is payable on October 10. How much dividend income will you receive in October from Gamma?

Question

Quizplus · Accepted Answer

You will receive a dividend for all 700 shares (400 + 200 + 100) since you purchased them before the record date of September 15. At $1.40 per share, the total dividend income is 700 shares * $1.40/share = $980.

You Purchased 400 Shares of Gamma, Inc