Rights Ex-Dividend Date

Explanation

The Ex-Dividend date is the date on which the right to the current dividend no longer accompanies the stock. This date is usually four days prior to the holder-of- record date.

The correct answer is D. Ex-Dividend Date.

The ex-dividend date is the date on which the right to the current dividend no longer accompanies a stock. On this date, the stock begins trading without the right to receive the upcoming dividend.

To understand the ex-dividend date, it's important to know the other related dates in the dividend timeline:

1. Declaration Date: This is the date when the company's board of directors announces the upcoming dividend. They declare the amount of the dividend and the payment date.

2. Holder-of-Record Date: Also known as the record date, this is the date on which the company determines the shareholders who are eligible to receive the dividend. To be eligible, an investor must own the stock before this date.

3. Ex-Dividend Date: This is the date on which the stock starts trading without the right to receive the upcoming dividend. If an investor purchases the stock on or after the ex-dividend date, they will not receive the dividend. The ex-dividend date is typically set two business days before the holder-of-record date. This time frame allows for the settlement of stock trades.

4. Payment Date: This is the date on which the company distributes the dividend to eligible shareholders. It is usually a few weeks after the holder-of-record date.

In summary, the ex-dividend date is the date on which the right to the current dividend is separated from the stock. Investors who purchase the stock on or after this date will not receive the dividend. The ex-dividend date is crucial for investors to consider when planning their investment strategy, particularly if they are seeking to receive dividends from a particular stock.