Question

ABC corporation announces a 5:4 stock split to holders of record on Wednesday, November 15th, payable on November 30th. NASDAQ has set the ex date at December 1st. What is the first day that the stock will trade without a due bill attached?

Answer 1

December 1st

Step-by-step explanation:

If an investor purchases ABC stock before the ex-date, he/she is entitled to the additional shares that will be assigned on the ex-date. But if an investor purchases the stock at the ex-date or after, he/she will not be entitled to any additional shares, since the ex-date is the first day the stock will not trade with a due bill.