Question

Ollie owned stock in a hotel company that announced a dividend, but he did not receive it. This is because he sold the stock before the __________ date had passed.

Answer 1

Answer:

record date

Explanation:

Basically, this rule is applied to shareholders in that if they decide to sell their stock before the company's set record date (ie the date the company checks its financial books) in other to determine those qualify to receive the dividend.

So by selling before this date, Ollie was not part of the record of the company's shareholders and was thus exempted from recieving the dividents.