Which of the following is the first date in the sequence required to pay dividends?
A)Payment date
B)Announcement date
C)Date of record
D)Declaration date

Question

Quizplus · Accepted Answer

The first date in the sequence required to pay dividends is the declaration date, when the company's board of directors announces its intention to pay a dividend and sets the amount and date of payment. The other dates in the sequence are the date of record, which is the date on which shareholders must be on the company's books in order to receive the dividend; the ex-dividend date, which is two business days before the date of record and is the date on which the stock begins trading without the dividend; and the payment date, which is the date on which the dividend is actually paid to shareholders who are on the company's books as of the date of record.

Which of the Following Is the First Date in the Sequence