JAMB - Commerce (2025 - No. 16)
When the buyer of an existing share is to receive the pending dividend, the price is
at par
cum div
at a discount
ex-div
Forklaring
When the buyer of an existing share is to receive the pending dividend, the price is 'cum div'. 'Cum div' is a Latin term that means
'with dividends'. The term is used to signify that a buyer will receive the current dividend that has been declared, but not yet paid.
The other options do not correctly describe this situation.
'with dividends'. The term is used to signify that a buyer will receive the current dividend that has been declared, but not yet paid.
The other options do not correctly describe this situation.