Which date signifies that purchasers of stock will not receive a dividend?

Which date signifies that purchasers of stock will not receive a dividend?

• A. Record date
• B. Subscription date
• C. Ex-date
• D. Payment date

Answer: (C)

The ex-dividend date, or ex-date, is the date that signifies when purchasers of a stock will not receive the next dividend payment. This date typically falls one business day prior to the record date. To receive the dividend, an investor must own the stock before the ex-date; buying on or after this date means the buyer will not receive the declared dividend because the seller of the stock will remain the holder of record on the record date. Understanding the role of the ex-date is fundamental in the context of dividends because it establishes the cutoff for dividend eligibility. If you purchase stock on or after this date, you will not benefit from the upcoming dividend payment, which is a critical detail for investors considering their investment timing and fiscal strategies.

The ex-dividend date, or ex-date, is the date that signifies when purchasers of a stock will not receive the next dividend payment. This date typically falls one business day prior to the record date. To receive the dividend, an investor must own the stock before the ex-date; buying on or after this date means the buyer will not receive the declared dividend because the seller of the stock will remain the holder of record on the record date.

Understanding the role of the ex-date is fundamental in the context of dividends because it establishes the cutoff for dividend eligibility. If you purchase stock on or after this date, you will not benefit from the upcoming dividend payment, which is a critical detail for investors considering their investment timing and fiscal strategies.