Investors forego the right to the dividend if they purchase on or after the ex-dividend date.

Name: Investors forego the right to the dividend if they purchase on or after the ex-dividend date.
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Question

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This statement is true. The ex-dividend date is typically set by the stock exchange and is one business day before the record date. A buyer who purchases the stock on or after the ex-dividend date is not entitled to the dividend payment for that period, as the previous owner of the stock is entitled to it.

Investors Forego the Right to the Dividend If They Purchase