Settlement
Under T+1 settlement, when is the ex-dividend date relative to the record date?
Under T+1: Ex-date = Record date. Must buy the day BEFORE to receive the dividend.
Complete Analysis & Legal Rationale
With T+1 settlement, the ex-dividend date is the SAME day as the record date. To receive the dividend, an investor must purchase the stock at least one business day before the record date so the trade settles by the record date.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.