S7 - Chapter 5 - Fundamentals of Equity Investments Flashcards
1
Q
Dividends: Declaration Date
A
the date on which the dividend is authorized (when the board of directors declares dividend)
2
Q
Dividends: Payment Date
A
the date on which the declared dividend will be paid. Usually paid quarterly and are taxable the year in which they are paid/received.
3
Q
Dividends: Record Date
A
the date on which the investor must officially own the stock to be entitled to received the dividend
4
Q
Dividends: Why does a stock price get reduced by its dividend?
A
research
5
Q
Current Yield (Dividend Yield)
A
the annual income an investor receives from an investment relative to its current market price
6
Q
short term gain/loss
A
< 1 year holding period, taxed at ordinary income
7
Q
long term gain/loss
A
> 1 year holding period, taxed at 20% max
