[amp_mcq option1=”it is inclusive of dividend declared” option2=”it is exclusive of dividend declared” option3=”it excludes interest” option4=”it includes interest” correct=”option1″]<\/p>\n
The correct answer is: A. it is inclusive of dividend declared.<\/p>\n
A cum dividend share is a share that is traded with the dividend that has been declared but not yet paid. This means that the buyer of the share will receive the dividend when it is paid out.<\/p>\n
A ex dividend share is a share that is traded without the dividend that has been declared. This means that the buyer of the share will not receive the dividend when it is paid out.<\/p>\n
The price of a cum dividend share is usually higher than the price of an ex dividend share because the buyer of the cum dividend share is getting the dividend.<\/p>\n
Here is a table that summarizes the key differences between cum dividend and ex dividend shares:<\/p>\n
| Characteristic | Cum dividend share | Ex dividend share |
\n| — | — | — |
\n| Dividend | Included | Excluded |
\n| Price | Higher | Lower |
\n| When to buy | Before the ex dividend date | After the ex dividend date |
\n| When to sell | After the ex dividend date | Before the ex dividend date |<\/p>\n
I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"
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