Final answer:
The Ex-date or Ex-Dividend Date is the first day a stock is traded without entitlement to the dividend for the seller. A dividend is a portion of a company's profits paid to shareholders. Capital gains represent the profit made from buying a stock at a lower price and selling at a higher one. The answer is option b.
Step-by-step explanation:
The first day of trading, when the seller, rather than the buyer, of a stock will be entitled to receive the dividend for a stock, is the Ex-date or Ex-Dividend Date. This is the date on which the right to receive the next dividend payment does not accompany a stock sale. Investors buying the stock on or after the ex-dividend date will not receive the upcoming dividend payment.
When a company pays a dividend, it is sharing a portion of its profits with its shareholders. The amount received depends on the number of shares owned. For example, if a stock pays a dividend of 75 cents per share, and an individual owns 85 shares, they will receive a total dividend payout corresponding to that rate.
Another form of return that investors seek from purchasing stocks is capital gains. This occurs when an investor buys a stock at a lower price and sells it at a higher price, as in the case of buying a share for $45 and selling it later for $60. The $15 difference in this scenario represents a capital gain.