If a share is quoted ex-div, it means the new buyer would

Assessment: WAEC SSCE - Commerce - 2013 (Objective) Subject: Commerce

Question 1 Report

If a share is quoted ex-div, it means the new buyer would

Answer Details
If a share is quoted ex-div, it means the new buyer would not get the next dividend. When a company pays a dividend to its shareholders, it typically sets a record date. This is the date on which the company checks its records to identify which shareholders are entitled to receive the dividend. The ex-dividend date is the date on or after which a share is traded without the right to receive the next dividend. This means that if an investor buys shares in a company on or after the ex-dividend date, they will not be entitled to receive the next dividend payment. For example, suppose a company pays a dividend of $1 per share, and the ex-dividend date is set as March 31st. If an investor buys shares in the company on March 30th, they will be entitled to receive the $1 dividend payment. However, if they buy shares on April 1st or later, they will not be entitled to receive the next dividend payment. Overall, the ex-dividend date is an important consideration for investors who are interested in receiving dividend payments from a company. If a share is quoted ex-div, it means that the new buyer would not get the next dividend.

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