Question

ollie owned stock in a hotel company that announced a dividend, but he did not receive it. this is because he sold the stock before the __________ date had passed. options: ex - dividend, book closure, declaratio, paymer

Explanation:

To determine the correct term, we analyze each option:

• Ex - dividend date: The ex - dividend date is the first day a stock trades without the dividend. If an investor sells before this date, they forfeit the dividend. This matches Ollie's situation as he sold before receiving the dividend.
• Book closure date: This is when the company closes its books to determine shareholders for dividend, but it's not the key date for selling and losing dividend rights.
• Declaration date: This is when the company announces the dividend, not related to when selling affects dividend receipt.
• Payment date: This is when the dividend is paid, selling before this doesn't mean you don't get the dividend if you owned before ex - dividend.

Answer:

A. ex - dividend