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  1. Default Dividend Question

    If you sell before the Ex-Dividend date, you do not receive any dividend money?

    Lets say I held a dividend paying stock for nearly an entire quarter, and sold right before the ex-dividend date...if I don't get the money, who does? It seems to me, that it would be partially payable, due to holding it for nearly the entire time?

  2. Default

    There is no partial payment on dividend. They are not prorated. I believe whoever owns the stock on ex-dividend date gets the dividend credit. The stock price automatically drops the next day by the dividend amount. So people who buy the stock before ex-dividend date and sell right after will get a wash - if not counting the market price fluctuations. And whoever shorted the stock on ex-dividend date will be debitted the dividend amount.

  3. Default

    The person you sold it to, as Bolimomo said. You need to buy the stock before the ex-dividend date and hold it at least until the morning OF the ex-dividend date to receive the dividend. It's not something to fret about since you don't really gain anything with the dividend anyway (because of the aforementioned drop in the stock price).

  4. Default

    Actually it's whoever owns it the day prior to ex-dividend. All ex-dividend means is without dividend. Therefore the ex-dividend date is the date the stock trades without the dividend due. The ex date will always be two days before the record date due to regular way settlement of three business days.

    For example, if a stocks record date was Thursday Dec. 11th the ex date would be the previous Tuesday Dec. 9th. This is because if you bought the stock on Tuesday the trade would not settle, assuming regular way settlement (T+3), until the following Friday Dec. 12th. Therefore, the seller would still be the holder/owner of record on the record date of Thursday Dec. 11th.

  5. Default

    Another thing to keep in mind BentleyVTech is the stock will open lower by an amount equal to the dividend. So if the dividend was for 0.25 and the stock trades at $10/share the stock will be adjusted on the exchange and open at $9.75/share. Furthermore, any orders placed below the market -- limit buys & stop limit -- will be automatically adjusted on the specialist's book to reflect the lowering of the share price.



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