The last date on which you can purchase shares of stock and still receive the dividend is the date ________ business day(s)prior to the date of record.

Question

Quizplus · Accepted Answer

The correct answer is three business days prior to the date of record. This is because of the T+2 settlement rule in the stock market, where transactions are settled two business days after the trade date. To receive the dividend, the purchase must be made at least three business days before the record date to ensure the transaction settles by the record date.

The Last Date on Which You Can Purchase Shares of Stock