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Anyone who purchases the stock on or after the ________ date will not receive the dividend.Group of answer choicesdeclaration datepayment date.ex-dividend date.record date.

Question

Anyone who purchases the stock on or after the ________ date will not receive the dividend.Group of answer choicesdeclaration datepayment date.ex-dividend date.record date.

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Solution

The correct answer is "ex-dividend date."

Here's why:

  1. Declaration date: This is the date when a company's board of directors announces the next dividend payment. This announcement includes the size of the dividend, the record date, and the payment date. However, buying a stock on or after this date does not prevent an investor from receiving the dividend.

  2. Payment date: This is the date when the dividend payments are actually distributed to shareholders. Buying a stock on or after this date does not affect the dividend payment for that period because the record date has already passed.

  3. Ex-dividend date: This is the date after which any new shareholders are not entitled to receive the next dividend payment. So, if you buy the stock on or after the ex-dividend date, you will not receive the dividend.

  4. Record date: This is the date when a company reviews its books to determine its "shareholders of record." Shareholders who own the company's stocks on this date will receive the dividend. Buying a stock on or after the record date does not prevent an investor from receiving the dividend, as long as the purchase was made before the ex-dividend date.

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