Question

The following dates were established for ABC Corporation's next dividend:

05/01 - Declaration Date
05/11 - Ex-Date
05/14 - Record Date
05/25 - Payable Date
The Trust Officer for Mrs. Verona purchased 1,000 shares on 05/02 and sold 500 shares on 05/11 and the remaining 500 shares on 05/25 in her account. Mrs. Verona's account is entitled to receive dividends on how many shares of ABC Corporation stock?

a. 0
b. 1,000
c. 500
d. 100

Answer 1

Mrs. Verona's account is entitled to receive dividends on 1,000 shares of ABC Corporation stock.

Step-by-step explanation:

To determine how many shares of ABC Corporation stock Mrs. Verona's account is entitled to receive dividends on, we need to consider the dates of her purchases and sales. The ex-date is the date on which a stock begins trading without the dividend. Any shares bought on or after this date will not be entitled to receive dividends. Mrs. Verona purchased 1,000 shares on 05/02, which is before the ex-date of 05/11, so she is entitled to receive dividends on those shares. Therefore, the answer is b. 1,000 shares.