Final answer:
The true statement about dividends paid on stock is that the ex-dividend date is not set by the company's board of directors. Instead, it is typically set by the stock exchange, and this date signifies when newly bought shares are not entitled to the declared dividend. The correct option is c.
Step-by-step explanation:
The correct statement regarding dividends paid on stock is: C. The ex-dividend date is not set by the company's board of directors. The process of dividend payment involves several key dates, including the declaration date, record date, and the ex-dividend date.
The board of directors of a company declares a dividend on the declaration date and also sets the record date, which is the date by which shareholders must be on the company's books in order to receive the declared dividend.
The ex-dividend date, typically set two business days before the record date, is determined by the stock exchange and not by the company; as of this date, any shares bought do not come with the right to receive the most recently declared dividend. All open orders are not adjusted on the ex-dividend date, which is a common misconception.