When a firm that previously paid regular dividends ceases to do so, the stock is ex-dividend until the firm resumes regular dividend payments.

Question

Quizplus · Accepted Answer

When a firm that previously paid regular dividends ceases to do so, the stock is no longer ex-dividend. The ex-dividend status only applies when a company declares a dividend before the ex-dividend date, after which the stock will trade without the dividend. If a company stops paying dividends altogether, there is no longer an ex-dividend date.

When a Firm That Previously Paid Regular Dividends Ceases to Do