A dividend is being paid to shareholders of record as of Wednesday, September 21. What is the last date that an investor can buy the shares cum dividend?

Question

Quizplus · Accepted Answer

The last date an investor can buy shares cum dividend is two business days before the record date, due to the T+2 settlement period for stock transactions. This means the purchase must be made by September 19 to ensure the transaction settles by September 21.

A Dividend Is Being Paid to Shareholders of Record as of Wednesday