Question

An investor at the firm insists on buying a stock in order to receive the dividend, despite being advised against this by their registered representative. The stock's record date is Monday, October 23rd. Assuming a regular-way settlement, the latest that this investor could buy the stock and still receive the dividend is

[A] Wednesday, October 18th.
[B] Thursday, October 19th.
[C] Friday, October 20th.
[D] Saturday, October 21st.

Answer 1

B] Thursday, October 19th.

Step-by-step explanation:

For the dividend to be received, the investor has to buy the stock before the formal date in order for the investor to receive the dividend. The formal date according to this scenario is Friday, October 20th, which is a business day preceding the record date. Therefore, the investor would be needing to purchase the stock on or before a date prior to Thursday, October 19th, so as for the dividend to be received.