Dividend Payment Procedures: Chronological Order

Correct Chronological Order of Dividend Payment Procedures

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Question

Which of the following is the correct chronological order in dividend payment procedures?

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Explanations

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A. B. C. D.

C

In the U.S., the ex dividend date, i.e. the date after which the stock does not carry with it the right to receive the declared dividend, is 4 business days before the record date. The record date is the last day for registering the ownership of the stock with the firm so that the dividend check is mailed to you and not someone else.