Final answer:
The date of entitlement to the seller for the cash dividends on exchange traded equities is the record date. It's the company's established deadline for determining shareholders eligible for dividends, preceding the ex-dividend date set by the stock exchange.
Step-by-step explanation:
The date of entitlement to the seller for the cash dividends on exchange traded equities is the record date. This is the date when the company determines the shareholders eligible to receive the dividend, typically a few days after the ex-date. The ex-date, or ex-dividend date, is the date on which the stock starts trading without the value of its next dividend payment.
It is important to distinguish between these dates:
- Record date: The company's deadline to determine the shareholders eligible for a dividend.
- Ex-date: The day on which the stock trades without its dividend and is determined by the stock market.
- Trade date: The day an order to buy or sell shares is executed.
- Settlement date: The date when the trade is finalized, and legal transfer of securities happens.
Holding shares before the ex-date guarantees qualification for any declared dividend, thus the correct answer to the question is letter a. record date.