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Cum div differs from ex div in that, the later

Cum div differs from ex div in that, the later
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Entitles the purchaser to recieve a company's current dividend
  • B Entitles the vendor to recieve a company's current dividend
  • C Confirms a purchase or sale made on behalf of a share holder
  • D Is a document used to transfer ownership of shares
Correct Answer: Option A
Explanation:
Cum dividend is the status of a security when a company is preparing to pay out a dividend at a later date. The seller of a stock cum dividend is selling both the right to the share and the right to the next dividend distribution.
The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value.

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