Question

You purchased 200 shares of ABC stock on July 15th. On July 20th, you sold 100 shares and then on July 22nd you purchased your final 200 shares of ABC stock. The company declared a dividend of $1.10 a share on July 5th to holders of record on Thursday, July 22nd. The dividend is payable on July 31st How many shares of dividends will you receive for the 200 shares that purchased on July 15th? 200 OO Question 16 7.7 pts How many shares of dividends will you be able to keep for the 100 shares that you sold on July 20th? 100

Answer 1

Answer.

As we know that there is generally T+3 days settlement procedure i.e.. If we purchase purchase a shares of a company today it took three more days to record in the company's books. In the given case I have purchase 200 shares of ABC company on 15th July out of which 100 shares sold on 20th July so it required minimum three days to effect in records of company i.e.. it reflect in company's book on 23rd July So, we are eligible to received dividend on total shares purchased on 15th July. Similarly share purchased on 22nd July are not eligible for dividend as it does not reflect in ABC's record books.

Answer(a) We will received the dividend on all 200 shares purchased on 15th July. i.e.. 200 shares

Answer (16) We will able to keep the dividend of all 100 shares sold on 20th July because it does not reflect in companies records book on 22nd July. i.e.. 100 shares

Answer (17)We will not able to received the dividend for shares purchased on 22nd July. i.e.. 0

Answer (18) Amount of dividend received from ABC company on 31st July= $1.1*200=$220