Question

Raheem bought stock in a tech company that had just announced a dividend. He did not receive the dividend even though the record date had not yet passed when he purchased it. This is because he purchased the stock on or after the __________ date.

a. payment
b. ex-dividend
c. declaration
d. in-dividend

Answer 1

Answer:

b. ex-dividend

Explanation:

The dividend would only be paid to those investors who have purchased the stock prior to the ex-dividend date now if Raheem buy the stock on or after the ex-dividend rate so he would not be eligible for the dividend

Therefore as per the given situation, since he did not received the dividend this is because he purchased the stock on or after of ex-dividend date

Therefore the option b is correct