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Which of the following is the best definition for the ex-dividend date? A situation where dividends...

Which of the following is the best definition for the ex-dividend date?

A situation where dividends and capital gains are repackaged and sold separately from common shares.

The date on which holders of record are designated to receive a dividend.

The date on which the board of directors passes a resolution to pay a dividend.

The date two business days before the date of record, establishing those individuals entitled to a dividend.

The idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock.

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Answer #1

The best definition of the ex-dividend date is the date two business days before the date of record, establishing those individuals entitled to a dividend.

So the correct option is The date two business days before the date of record, establishing those individuals entitled to a dividend.

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