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Stockholders are eligible for a dividend if they own the stock on the date of: a. declaration. ...

Question:

Stockholders are eligible for a dividend if they own the stock on the date of:

a. declaration.

b. record.

c. payment.

d. issuance

Interim Dividend

The dividend payment made before the current year's annual general meeting (AGM ) is known as the interim dividend. The interim dividend is reflected in the organization's interim financial statement. The amount of the interim dividend is smaller than the final dividend.

Answer and Explanation: 1

The correct option is b. Record date

Stakeholders owing the shares on the date of record are eligible for the dividend payout. The stockholders must buy the stocks two days before the record date to achieve eligibility criteria.


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What Are Dividends? - Investing in Stocks

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Chapter 22 / Lesson 11
9K

Dividends are corporate profits distributed to shareholders. Take a closer look at dividends in depth and unpack two kinds of stocks in which people can invest--common stock and preferred stock--along with the advantages and disadvantages of each.


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