The date upon which a dividend is formally declared by the board of directors is the ________ date.
A)declaration
B)record
C)payment
D)ex-dividend

Question

Quizplus · Accepted Answer

The declaration date is when the board of directors officially declares that a dividend will be paid to shareholders. At this point, the company sets an "ex-dividend" date, which is when the stock begins trading without the right to receive the upcoming dividend. The other dates listed (record and payment) come after the declaration date and are related to the distribution of the dividend.

The Date Upon Which a Dividend Is Formally Declared by the Board