The firm will pay the dividend to all shareholders of record on a specific date,set by the board,called the ________ date.

Question

Quizplus · Accepted Answer

The record date is the specific date set by the board on which the firm will determine which shareholders of record are eligible to receive the dividend. The other choices are related to different stages in the dividend payment process: 
A) Declaration date: The date on which the board officially announces the dividend and sets the amount.
C) Ex-dividend date: The date on which the stock begins trading without the value of the dividend. 
D) Distribution date: The date on which the dividend is actually paid to eligible shareholders. 
E) Payable date: The date on which the firm sends out dividend payments to eligible shareholders.

The Firm Will Pay the Dividend to All Shareholders of Record