The date the board of directors votes to pay a dividend is called the:
A)Date of stockholders' meeting
B)Date of declaration
C)Date of record
D)Date of payment
E)Liquidating date

Question

Quizplus · Accepted Answer

The date the board of directors votes to pay a dividend is called the date of declaration. This is when the board announces the payment of a dividend and sets the amount to be paid. The date of record is the date on which a shareholder must own shares in order to receive the dividend, while the date of payment is when the actual payment of the dividend is made. The date of stockholders' meeting is when shareholders gather to vote on important matters relating to the company. The liquidating date is not a relevant term in this context.

The Date the Board of Directors Votes to Pay a Dividend