JAMB - Commerce (1999 - No. 29)

Aliyu bought 100 shares at the stock market through a stockbroker. He was told the price each share was N3 cum. div. This means that Aliyu

is entitled always to a cumulative dividends accruing from the shares

is entitled to the next dividends due to the shares

will not be entitled to the next dividends due to the shares

still owes N3 on the shares which will be subtracted from the dividends