New Enroll for RBI, SEBI & NABARD Intro Class! April 18 at 9:15 PM

    Question

    when a company has declared that there will be a

    dividend in the future but has not yet paid it out, it is known as?
    A Annual Dividend Correct Answer Incorrect Answer
    B Cumulative Dividend Correct Answer Incorrect Answer
    C Yearly Dividend Correct Answer Incorrect Answer
    D Mean Dividend Correct Answer Incorrect Answer
    E Frequency Dividend Correct Answer Incorrect Answer

    Solution

    A stock is cum dividend, which means "with dividend," when a company has declared that there will be a dividend in the future but has not yet paid it out. A stock will trade cum dividend until the ex-dividend date. After that, the stock trades without its dividend rights. When the buyer receives the next dividend scheduled for distribution, the share is cum dividend.

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