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WAEC Commerce 2010 Question 19

Question 19

Stock Exchange

When the buyer of an existing share is to receive the pending dividend, the price is

  1. A.cum div.
  2. B.ex-div.
  3. C.at par.
  4. D.at a discount.
Show the answer and explanation

Answer: A (cum div.)

Explanation

Cum div means 'with dividend': the buyer gets the coming dividend.