Commerce WAEC

When shares are sold ex-div it means the?

A. shares are sold at par price
B. buyer is entitled to the next dividend
C. shares are sold above par
D. seller has the right to the next dividend

Correct Answer: Option D

D. seller has the right to the next dividend

Explanation

The ex-dividend date is normally two business days before the record date. If you purchase a stock on or after its ex-dividend date, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you will get the dividend.

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