Series 10 Exam Question 7: Answer and Explanation

Question: 7

A security has been delivered late to the buying member after the record date for a dividend distribution. Which of the following is true?

I. The seller will keep the dividend.

II. The buyer will be owed the dividend.

III. The buying member will send a due bill.

IV. The selling member will receive the dividend.

• A. I and II
• B. II and III
• C. I only
• D. II, III, and IV

Correct Answer: D

Explanation:

The seller will not keep the dividend.