What is the earliest day on which an investor can currently purchase Amex, Inc., if the investor wants to avoid receiving a dividend and thereby avoid paying tax on the distribution, if the date of record is Thursday, October 31?

A. Monday, October 28.

B. Tuesday, October 29.

C. Thursday, October 24.

Question

Nikolai Montgomery

Business

3 October, 00:16

What is the earliest day on which an investor can currently purchase Amex, Inc., if the investor wants to avoid receiving a dividend and thereby avoid paying tax on the distribution, if the date of record is Thursday, October 31?

A. Monday, October 28.

B. Tuesday, October 29.

C. Thursday, October 24.

+2

Answers (1)

Know the Answer?

Sage Hurst · Answer 1

Option (B) is correct.

Explanation:

Dividend refers to a sum of money that is paid by the company to its shareholders and this amount of money is distributed from the earnings or profits of the company.

The earliest day is Tuesday, October 29 because the previous dividend date or we can say that ex-dividend date is two business days or working days prior to the date of the record of dividend.

What is the earliest day on which an investor can currently purchase Amex, Inc., if the investor wants to avoid receiving a dividend and thereby avoid paying tax on the distribution, if the date of record is Thursday, October 31?A. Monday, October 28.B. Tuesday, October 29.C. Thursday, October 24.