To receive a dividend on common stock, an investor must purchase the stock before the ex-dividend date.

Question

Quizplus · Accepted Answer

This statement is true. The ex-dividend date is the date on or after which a stock trades without the dividend. If someone purchases the stock on or after the ex-dividend date, they will not be entitled to the upcoming dividend payment. Therefore, an investor must purchase the stock before the ex-dividend date to receive the dividend.

To Receive a Dividend on Common Stock, an Investor Must