SIE Exam Question 358: Answer and Explanation

Question: 358

XYZ Inc. declares a $0.30 dividend payable on Monday, August 15, to all shareholders of record as of Monday, August 8. When is the ex-dividend date for a regular way trade in the stock?

• A. Friday, August 5
• B. Thursday, August 4
• C. Wednesday, August 3
• D. Tuesday, August 2

Correct Answer: A

Explanation:

A - For regular way trades in equities, the ex-dividend date is one business days before the record date.