SERIES-6 practice question 17 of 35
On Monday, August 2nd, the Board of Directors of Baldor Electric (BEZ) announced that the firm would pay a dividend of $0.17 a share. Payment will be made on Friday, October 8th to shareholders of record as of Friday, September 17th. In order to receive this dividend check, an investor would have to purchase shares of Baldor Electric before which day?
Full set: 325 questionsCorrect Answer:
B. Wednesday, September 15th.
Explanation
In order to receive the dividend check, an investor would have to purchase shares of Baldor Electric before Wednesday, September 15th, the ex-dividend date. The ex-dividend date of a stock is two business days prior to the date of record.
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