Question

Dividends are paid to holders appearing on the companies books as of:

a. record date.
b. ex-date.
c. payable date.
d. declaration date.
e. due date.

Answer 1

The correct answer is option a. record date.

Step-by-step explanation:

Dividends are payments made by a corporation to its shareholders as a distribution of the company's profits. When dividends are declared, the company sets a record date - this is the date on which shareholders must be on the company's books in order to receive the dividend. Since the question is referring to the date shareholders must appear on the company's books, the correct answer is a. record date.

Dividends represent a percent of the profits and are given out according to the number of shares a shareholder owns. Public companies, which are businesses owned by shareholders with limited liability and may have publicly-traded stock, are the type of companies that generally issue dividends.

The board of directors of the company is responsible for making decisions on when to pay dividends.