Series 7 Exam Question 152: Answer and Explanation

Question: 152

The ex-dividend date is __________ business day(s) before the record date.

• A. One
• B. Two
• C. Three
• D. Five

Correct Answer: A

Explanation:

A. The ex-dividend date is the first day that the purchaser of a stock will not receive a previously declared dividend. The ex-dividend date is one business day before the record date. As a reminder, Saturday and Sunday are not considered business days. So, if the record date was on Monday, the ex-dividend date would be on the previous Friday.