How is the Ex date not determined by the BOD? If the record date is determined by the BOD and the Ex date is a reflection of that date, doesnt that mean the Ex date is also determined by them? It isn’t determined by the shareholders, so who is it determined by?
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Hi, good question. You’re absolutely right that the BOD sets the record date, and so in a way, it indirectly sets the ex-date. However, it’s the SEC that makes the rules for settlement timelines, which is what directly impacts the ex-date.
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is ti true the ex date is the same as the record date now ???
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Yes, for regular-way settlement!
Sorry, is the ex-date not set by FINRA? Why are you mentioning the SEC here?
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Technically, I believe it is the SEC that makes the rule, and then FINRA or the NYSE adopts the rule and regulates trading. The agencies all work closely together with nuances in who officially controls what. The specifics are complicated and not relevant to these exams.
Interestingly, SEC’s bulletin on the recent settlement changes doesn’t mention FINRA at all, whereas FINRA’s bulletin implies they developed the rule together.
In any case, the key point is that settlement and the ex-date are part of the regulatory framework, and aren’t directly set by the board of directors.
I am currently on a practice question about SHay Execution CO declaring a dividend and it says the ex date is different than the record date. I have noticed that a lt. The questions contradict themselves.
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Hi @Ebony_Raynor, we have thousands of unique questions for each course with subtle variations that can change the answer. If you have questions about a specific quiz, can you please use the feedback icon 
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