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WAEC Commerce 2002 Question 13

Question 13

Stock Exchange

When shares are sold "EX-DIV", it means that

  1. A.no dividend is paid on the shares
  2. B.the buyer receives the dividend
  3. C.the seller receives the dividend
  4. D.the stock exchange retains the dividend
Show the answer and explanation

Answer: C (the seller receives the dividend)

Explanation

Ex-dividend means without the dividend: the seller keeps the dividend about to be paid, not the buyer.