SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 47: Answer and Explanation

Question: 47

On which date does ownership change when a security is sold?

• A. Settlement date
• B. Declaration date
• C. Record date
• D. Ex-dividend date

Correct Answer: A

Explanation:

A: Choice A is correct because this is the date on which the ownership change is recorded on the books of the issuing corporation. Choices B, C, and D are incorrect because these have to do with dividends declared and paid, and the effect of the market price of the stock, not on change of ownership.