On June 23, 2008, American Capital Agency declared a cash dividend of $0.31 a share, to be paid on July 29, 2008, to shareholders of record as of July 2, 2008. The ex-dividend date is June
30, 2008. In order to receive this dividend, an investor would have to purchase the stock on or
Before

Question

Quizplus · Accepted Answer

The ex-dividend date is the date on or before which an investor must purchase the stock in order to receive the dividend. In this case, the ex-dividend date is June 30, 2008. Therefore, an investor would have to purchase the stock on or before June 29, 2008, to receive the dividend on July 29, 2008. Choice D is the correct answer. The ex-dividend date is the date on or after which the buyer of a stock is not entitled to receive the next dividend payment. In this case, the ex-dividend date is June 30, 2008. Therefore, an investor would have to purchase the stock on or before June 29, 2008, to be entitled to receive the dividend payment on July 29, 2008. Choice D is the only option that falls before the ex-dividend date of June 30, 2008.

On June 23, 2008, American Capital Agency Declared a Cash