A corporate issuer declares a regular quarterly cash dividend payable to shareholders of record on Wednesday, November 18, 2026. Under standard T+1 regular-way settlement rules for equities, what is the ex-dividend date for this cash dividend, and on which date must an investor purchase the stock regular-way to be entitled to receive the dividend distribution?
- The ex-dividend date is Wednesday, November 18, 2026; an investor must purchase the stock no later than Tuesday, November 17, 2026.Cevap
- BThe ex-dividend date is Tuesday, November 17, 2026; an investor must purchase the stock no later than Monday, November 16, 2026.
- CThe ex-dividend date is Thursday, November 19, 2026; an investor must purchase the stock no later than Wednesday, November 18, 2026.
- DThe ex-dividend date is Wednesday, November 18, 2026; an investor must purchase the stock no later than Wednesday, November 18, 2026.
Cevap
The ex-dividend date is Wednesday, November 18, 2026; an investor must purchase the stock regular-way no later than Tuesday, November 17, 2026.
Under T+1 regular-way settlement rules, equity trades settle one business day following the trade date. To be listed as a shareholder of record on the record date (Wednesday, November 18), an investor must purchase the stock at least one business day prior, which is Tuesday, November 17. Consequently, trades executed on Wednesday, November 18 settle on Thursday, November 19—too late to receive the dividend. Thus, Wednesday, November 18 is the ex-dividend date (the date on which the stock begins trading without the dividend included).
Adım Adım Çözüm
Anahtar Kavram
Ex-Dividend Date Determination Under T+1 Regular-Way Settlement