A term which indicates that a share is temporary suspended is
A term which indicates that a share is temporary suspended is
- A) Ex-dividend
- B) Un-dividend
- C) Bond
- D) stock
Correct Answer: A) Ex-dividend
Explanation
This question is asking about a term used when a share is temporarily suspended. The options are A) Ex-dividend, B) Un-dividend, C) Bond, and D) Stock. The correct answer is A) Ex-dividend.When a company declares a dividend, they set a record date, which is the date that shareholders must be on the company's books as owners of the shares to receive the dividend. If an investor buys a share after the record date, they are not entitled to the dividend payment. The period of time between the record date and the payment date is called the ex-dividend period.
During the ex-dividend period, the share is temporarily suspended, and its price usually drops by the amount of the dividend to reflect that the investor will not receive the dividend payment. This is where the term Ex-dividend comes from.
Therefore, the correct option is A) Ex-dividend. Option B) Un-dividend, Option C) Bond, and Option D) Stock are incorrect.
It's important for Commerce students to understand these terms and concepts because they are essential to understanding how shares work and how investors can make informed decisions about buying and selling shares.