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Cum div differs from ex div in that, the later

...

Cum div differs from ex div in that, the later

A.

entitles the purchaser to recieve a company's current dividend

B.

entitles the vendor to recieve a company's current dividend

C.

confirms a purchase or sale made on behalf of a share holder

D.

is a document used to transfer ownership of shares

Correct answer is A

Cum dividend is the status of a security when a company is preparing to pay out a dividend at a later date. The seller of a stock cum dividend is selling both the right to the share and the right to the next dividend distribution.

The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value.