Alicia purchased 100 shares of GT stock on Wednesday,July 7^th.Nick purchased 100 shares of GT stock on Thursday,July 8^th.GT declared a dividend on June 20^th to shareholders of record on July 12^th and payable on August 1^st.Which one of the following statements concerning the dividend paid on August 1^st is correct given this information?

Question

Quizplus · Accepted Answer

Alicia is entitled to the dividend because she purchased the shares before the ex-dividend date, which is typically two business days before the record date of July 12, making her a shareholder of record. Nick purchased the shares after the ex-dividend date, so he is not entitled to the dividend.

Alicia Purchased 100 Shares of GT Stock on Wednesday,July 7th

Alicia Purchased 100 Shares of GT Stock on Wednesday,July 7^th