The board of directors of Berweck Corporation declared a cash dividend on January 18, 2010 , to be paid on February 18, 2010 , to shareholders holding the stock on February 2, 2010 . Given these facts, the date February 2, 2010 , is referred to as the
A) date of declaration.
B) date of payment.
C) ex-dividend date.
D) date of record.

Question

Quizplus · Accepted Answer

The date February 2, 2010, is referred to as the date of record, which is the date on which a company determines the shareholders who are eligible to receive the dividend payment. The date of declaration is the date on which the board of directors announces the dividend, the date of payment is when the dividend is actually paid out to eligible shareholders, and the ex-dividend date is two business days before the date of record, on which trades of the stock no longer come with the right to the upcoming dividend.

The Board of Directors of Berweck Corporation Declared a Cash