The ex-dividend date is defined as ________ business day(s) prior to the date of record
A) 1
B) 2
C) 3
D) 5
E) 10

Question

Quizplus · Accepted Answer

The ex-dividend date is defined as 2 business days prior to the date of record. This is because stock trades typically settle in 2 business days (T+2 settlement), ensuring that the buyer of a stock will not receive the dividend if they purchase the stock on or after the ex-dividend date.

The Ex-Dividend Date Is Defined as ________ Business Day(s) Prior