Question

Which of the following below correctly states the sequence of dates related to dividends on common stock?

a. Declaration date, Record date, Payment date
b. Record date, Declaration date, Payment date
c. Payment date, Declaration date, Record date
d. Declaration date, Payment date, Record date

Answer 1

The correct sequence of dates related to dividends on common stock is: Declaration date, Record date, Payment date.

Step-by-step explanation:

The correct sequence of dates related to dividends on common stock is: a. Declaration date, Record date, Payment date.

The declaration date is when the company announces that it will pay a dividend. The record date is the date on which a shareholder must be on the company's books to receive the dividend. And the payment date is when the dividend is actually paid to the shareholders.

For example, if a company declares a dividend on April 1st, the record date might be April 15th, and the payment date could be May 1st. This means that shareholders who own the stock on or before April 15th will be eligible to receive the dividend on May 1st.