SIE Exam Practice Question 65

Correct Answer: A

Explanation:

The declaration date is the date when the board of directors declares the decision to pay out a dividend to common stockholders of record. The record date is when investors must be officially recorded as stockholders on stock certificates in order to qualify for receipt of the declared dividend. The ex-dividend date is the first day that the stock trades without the declared dividend attached and, accordingly, will not be given to anyone purchasing the stock as of this date or after.