1.6.3 - DIVIDEND DEPARTMENT
What is the date that Cash Trades are settled?
Cash trades are settled the same day, so they go ex-dividend on the day after the record date because no lag occurs between the trade date and the transaction settlement.
What is the dividend department?
Collects and distributes cash dividends for stocks held in street name.
TRUE OR FALSE? Declaration, record, and payment are determined by FINRA, or the exchange. Ex-date is determined by the BOD.
FALSE Declaration, record, and payment are determined by the BOD. Ex-date is determined by FINRA, OR THE EXCHANGE.
What is the Ex-Dividend Date?
On the basis of the dividend record date, FINRA ort he exchange posts an ex-date. The ex-date is two business days before the record date.
A stock distribution of what percentage or more of the shares outstanding is subject to special handling?
25% or more.
The ex-date for NYSE-listed issues is set by: A) FINRA. B) the NYSE. C) the SEC. D) the issuer.
B) the NYSE. The ex-date is set by the market where the security principally trades. Reference: 1.6.3.2.2 in the License Exam Manual
What is a due bill?
A due bill is a printed statement showing a buyer's right to a dividend.
If a stock's ex-dividend date is Tuesday, January 13, when is the record date? A) Thursday, January 15. B) Thursday, January 8. C) Wednesday, January 7. D) Tuesday, January 20.
A) Thursday, January 15. The record date is two business days after the ex-dividend date (Thursday, January 15). Reference: 1.6.3.2 in the License Exam Manual
What is the Declaration Date?
When a company's BOD approves a dividend payment, it also designates the payment date and the dividend record date.
What are the responsibilities of the dividend department?
1. Collect and distribute cash dividends for stocks held in street name. 2. Handles interest payments, stock dividends, stock splits, rights offerings, warrants, and any special distribution to stock-holders or bondholders.
What is the DDA?
Dividend Disbursing Agent
What does DERP stand for?
Helps a person remember the order in which the dates involving dividend distributions occur. The order of the dates is Declaration, Ex, Record, Payable.
The "ex-date" is how many dates before or after the record date?
The ex-date is 2 business days before the record date.
What is the Payable Date?
The payable date is 3 or 4 weeks after the record date.
What is the Dividend Record Date?
The stockholders of record on the record date received the dividend distribution.