JAMB Commerce 2014 Objective — Question 34

Question 34 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2014 Objective paper, with the correct answer and a full explanation.

'Cum div' differs from 'ex div' in that, in the latter, it entitles the purchaser to receive a company's current dividend

A. it entitles the purchaser to receive a company's current dividend
B. it entitles the vendor to receive a company's current dividendCorrect
C. it confirms a purchase or sale made on behalf of a shareholder
D. it is a document used to transfer ownership of shares

Explanation

Ex-div means that the shares exclude the current dividend; thus, it entitles the vendor to the current dividend, unlike cum-div which includes it.

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