alleryStart learning →Which shareholders are paid the dividend based on the record date?
AThose registered on that date
BThose who sold earlier
COnly the top holders
DThose present at the AGM
Answer & Solution
Correct answer: A. Those registered on that date
Holders registered in the company's records as of the record date receive the dividend.
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Related questions
Which limits can restrict how much a firm may distribute as dividend?Why might management avoid changing dividend policy abruptly?Which alternative to cash dividends may a firm choose when surplus cash exists?Which type of shareholder usually prefers earnings to be retained?With no NPV-positive projects and surplus cash, what should management do?Management knowing more than the market is called what?If dividends bear higher tax than gains, raising them does what to value?Per the Modigliani-Miller theorem, dividend policy has what effect on firm value?