Final answer:
Both Suenette and Jake will receive the dividend from Davidson Interiors as they both purchased shares before the record date for the dividend.
Step-by-step explanation:
In stock trading, the date of record, also known as the record date, is the cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend or distribution. In the scenario provided, Davidson Interiors declared a dividend to holders of record on Thursday, October 15, and it is payable on Monday, November 2. Based on the dates given, Suenette purchased 200 shares on Monday, October 12, which was before the record date, while Jake purchased 100 shares on Tuesday, October 13, also before the record date. Therefore, as long as they both hold their shares through the record date, they should both receive the dividend.
Dividends are a way for companies to distribute a percent of the profits to shareholders, with the amount each shareholder receives based directly on the number of shares owned. For companies with stable profits, like those offered by Coca-Cola and electric companies, dividends can provide a consistent income to shareholders who often hold on to these stocks for many years. Given the information, the correct statement is: a.Both Suenette and Jake will receive this dividend.