Suppose an investor purchases a dividend-paying stock of a public company the day prior to the dividend record date. This investor is entitled to the next dividend.

Question

Quizplus · Accepted Answer

To be entitled to the next dividend, an investor must purchase the stock before the ex-dividend date, not merely the day before the record date. The ex-dividend date is typically set two business days before the record date.

Suppose an Investor Purchases a Dividend-Paying Stock of a Public