Andrew purchased shares of IBM on August 3^rd. IBM announced a cash dividend payable to shareholder of record on August 4^th. If the ex-dividend date is August 2^nd, Andrew will be entitled to the dividend since he bought stock prior to the date of record.

Question

Quizplus · Accepted Answer

Andrew will not be entitled to the dividend because he purchased the shares after the ex-dividend date, which means he does not qualify as a shareholder of record on the date of record for the dividend payout.

Andrew Purchased Shares of IBM on August 3rd

Andrew Purchased Shares of IBM on August 3^rd