Mutual Funds
Who determines the ex-dividend date for a mutual fund distribution?
Mutual fund ex-dates = Board of Directors. Stock ex-dates = Exchange (T+1 before record).
Complete Analysis & Legal Rationale
For mutual funds, the Board of Directors sets the ex-dividend date as part of its dividend declaration. This is different from exchange-traded stocks, where the exchange determines the ex-date based on settlement rules.
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:
The SEC regulates securities but does not set individual fund ex-dates.
FINRA oversees broker-dealers but does not determine mutual fund ex-dates.
Matches the verified teaching point in the explanation.
Open-end mutual funds do not trade on exchanges; their Board sets the ex-date.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.