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NEW QUESTION: 1
NEW QUESTION: 2
Tex Payor purchased his shares of Invest4U Mutual Fund 30 days prior to its ex-dividend date. In order
for any dividends he receives from the fund to be qualified, Tex cannot sell his shares until:
A. six months after the settlement date of his purchase.
B. one day after the fund's ex-dividend date.
C. twelve months after the settlement date of his purchase.
D. thirty-one days after the fund's ex-dividend date.
In order for any of the dividends Tex receives from the fund he purchased 30 days prior to its
ex-dividend date to be considered qualified, Tex cannot sell his shares until thirty-one days after the
fund's ex-dividend date. To treat any fund dividends as qualified, a shareholder has to have held the
shares for more than 60 days during a 121-day time frame that begins 60 days before the ex-dividend
date stipulated by the fund. So, if Tex bought the shares 30 days prior to Invest4U's ex-dividend date, he
needs to hold the shares for at least another 31 days after the fund's ex-dividend date for any distributed
dividends to be considered qualified dividends.
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