A term which indicates that a share is temporarily suspended is
A term which indicates that a share is temporarily suspended is
- A) ex-dividend
- B) cum-dividend
- C) bond
- D) stock
Correct Answer: A) ex-dividend
Explanation
This Commerce question is asking for the term used to indicate that a share is temporarily suspended. The options are A) ex-dividend, B) cum-dividend, C) bond, and D) stock. The correct answer is A) ex-dividend.When a share is ex-dividend, it means that the buyer is not entitled to the next dividend payment. This is because the seller of the share has already been paid the dividend. Therefore, the share is temporarily suspended from receiving the next dividend payment.
On the other hand, when a share is cum-dividend, it means that the buyer is entitled to the next dividend payment. This is because the seller of the share has not yet been paid the dividend. Therefore, the share is not suspended from receiving the next dividend payment.
Bonds and stocks are different types of securities that can be bought and sold in the financial markets. Bonds are debt securities, while stocks are equity securities. However, neither of these options applies to the question being asked.
In summary, the correct answer to this Commerce question is A) ex-dividend, which indicates that a share is temporarily suspended from receiving the next dividend payment.