SIE Exam Question 191: Answer and Explanation

Question: 191

What is the last date that ABC Corporation stock can be purchased to receive the dividend?

On November 1, ABC Corporation declared a $0.25 dividend to shareholders of record on Monday, December 5, payable on December 15.

• A. December 1
• B. December 5
• C. December 12
• D. December 15

Correct Answer: A

Explanation:

The last date that ABC Corporation stock can be purchased to receive the dividend is December 1. The record date is Monday, December 5, so that makes the ex-dividend date Friday, December 2. Since investors must own shares of the stock before the ex-dividend date to receive a dividend, the last day to purchase ABC Corporation stock would be Thursday, December 1.