Question

MNOP Inc. declared a $1.00 dividend with a record date of Thursday, September 15, and a payment date of Thursday, October 20. Cheri does not want receive this current dividend. What is the earliest date that she should purchase the stock in order to avoid receiving the dividend?

Answer 1

by September 13

Step-by-step explanation:

If Cheri does not want to receive dividend, she would purchase the stock on or after the ex-dividend date which is Tuesday, September 13; which is two days before the record date. An ex-dividend date is a cutoff date before which an investor can purchase a stock and receive a dividend. If you as an investor holds or buys MNOP Inc. stocks before Tuesday, September 13, then you will receive dividend on the payment date. If you buy the stock on or after that day, you will not be eligible to receive dividend for that payment period.