ABC corporation announces a 5:4 stock split to holders of record on Wednesday, November 15th, payable on November 30th. NASDAQ h

Question

lukranit [14]

2 years ago

13

ABC corporation announces a 5:4 stock split to holders of record on Wednesday, November 15th, payable on November 30th. NASDAQ h

as set the ex date at December 1st. What is the first day that the stock will trade without a due bill attached?

Business

1 answer:

AfilCa [17] · Answer 1 · 2022-09-05T07:48:32+03:00

Answer:

December 1st

Explanation:

If an investor purchases ABC stock before the ex-date, he/she is entitled to the additional shares that will be assigned on the ex-date. But if an investor purchases the stock at the ex-date or after, he/she will not be entitled to any additional shares, since the ex-date is the first day the stock will not trade with a due bill.