An investor sold all of their Vanguard Short-Term Corporate Bond Index Fund Admiral Shares, valued at $80,000, on June 30, expecting to receive the monthly dividend of approximately $300. The proceeds from the sale were credited to their money-market settlement fund, but the dividend was not received. The explanation lies in the ex-dividend date: by selling on June 30, the day before the distribution date, the buyer of the shares was entitled to the dividend, not the seller. The investor received the sale proceeds but lost the right to the dividend due to the transaction date.
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