Molly holds 1000 shares in a major bank listed on the ASX.The bank declared an interim dividend of $0.40 per share on January 15^th with the date of record being February 1^st.If Molly sells her shares on Monday January 28^th which statement is correct?

Question

Quizplus · Accepted Answer

The ex-dividend date is the first day that a buyer of a stock does not receive the dividend, and is usually two business days before the record date. In this case, the ex-dividend date is January 30th, which means that anyone who buys the shares on or after that date will not receive the dividend. Since Molly is selling her shares on January 28th, she is selling them before the ex-dividend date and therefore will not receive the dividend. She does not need to make any arrangements with the buyer regarding the dividend payment as the buyer will not be entitled to the dividend either.

Molly Holds 1000 Shares in a Major Bank Listed on the ASX.The