Concept:Cum div means “with dividend,” while ex div means “without dividend.”
This distinction decides who keeps the right to receive the current dividend.
Explanation:When shares are sold cum div, the buyer is entitled to the company's current dividend.
When shares are sold ex div, the right to the current dividend stays with the seller or vendor.
So ex div differs from cum div because ex div entitles the vendor to receive the current dividend, not the purchaser.
The purchaser in an ex div transaction buys the shares only, without the upcoming dividend payment.
Answer:B. entitles the vendor to receive a company's current dividend.