On January 1, 2022, you purchased 100 shares of Halifax Skaters Company.On February 1, 2022, the company declared a dividend of $2 per share for shareholders of record on March 15, 2022, payable on April 1, 2022.Assume the ex-dividend date is March 13, 2022.If you wished to receive the dividend, you cannot sell your shares before:

Question

Quizplus · Accepted Answer

The ex-dividend date is the first day that a share trades without the dividend. To receive the dividend, you need to be a shareholder of record on March 15, 2022. Typically, it takes two business days for a trade to settle, and therefore, you need to hold the shares at least until March 12, 2022, in order to be a shareholder of record on March 15, 2022. Therefore, the latest date to sell the shares without losing the right to the dividend is March 13, 2022, which is the ex-dividend date. Hence, option B is the best choice.

On January 1, 2022, You Purchased 100 Shares of Halifax