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the record date is the date when a stockholder must be registered on the corporation's books in order to receive dividend payments.the record date is the date when a stockholder must be registered on the corporation's books in order to receive dividend payments.truefalse

User Gsgx
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1 Answer

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Final answer:

The record date indeed determines eligibility for stockholders to receive dividend payments, which is one aspect of the returns they expect from investment, alongside capital gains.

Step-by-step explanation:

The statement that the record date is the date when a stockholder must be registered on the corporation's books in order to receive dividend payments is true. When a firm pays a dividend, it distributes a portion of its profits to shareholders. The amount a shareholder receives is proportional to the number of shares they own.

Furthermore, the expectation of a rate of return can be met through receiving these dividends or through capital gains, which occur when an investor sells their stock for a higher price than they paid.

Investors need to pay attention to dividend-related dates, like the record date, to ensure they are eligible for dividend payments. Dividends are a key aspect of the returns an investor can expect from owning stocks, alongside potential capital gains.

User DSander
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