JAMB Commerce 1997 Question 14

Question 14

Business Finance

A term which indicates that a share is temporarily suspended is

  1. A.ex-dividend
  2. B.cum-dividend
  3. C.bond
  4. D.stock.
Show the answer and explanation

Answer: A (ex-dividend)

Explanation

Ex-dividend means the share is sold without the right to the dividend just declared; that right is held back from the buyer.