Distributions to Shareholders: Dividend Payment Procedures Companies normally pay dividends quarterly and they go through a specific process. Firms first declare the quarterly dividend. The declaration date is the date on which a firm's directors issue a statement declaring a dividend. The company closes its stock transfer books at the close of business on the holder-of-record date. If the company lists the stockholder as an owner on this date, then the stockholder receives the dividend. The ex-dividend date is the date on which the right to the current dividend no longer accompanies a stock; it is usually two business days prior to the holder-of-record date. Finally, the payment date is the date on which a firm actually mails dividend checks. Give the correct response to the following question Seller sells Indigo Company stock to Buyer on the ex-dividend date. Which of the following statements is correct? Seleat- a. Neither Seller nor Buyer will receive the dividend. The dividend rolls over to special account for the next quarter's dividend. b. Buyer is now the owner of the stock, so Buyer receives the dividend. c. Because the stock was sold on the ex-dividend date, a special rule applies where the dividend is divided between Buyer and Seller d. Because the stock was sold on the ex-dividend date, Seller would still be considered the owner of the stock and would receive the dividend