On the date of record of dividends,the company ________.

Question

Quizplus · Accepted Answer

On the date of record of dividends, the company determines who owns the shares of stock on that date. This information is used to determine the eligible stockholders who will receive dividend payments. However, the actual disbursal of dividends and recording of dividend payable amount may happen at a later date. The company does not issue new shares of stock on the date of record of dividends.

On the Date of Record of Dividends,the Company ________