basic corp fin ques... stock, receiving, receive, payment

sabaruch

The cut-off date for receiving the dividend is known as the:
A) ex-dividend date.
B) holder of record date.
C) date of payment.

Correct answer is A)

But why do i receive the dividend on the ex-dividend date? I thought the ex-dividend date is the date the stock trades without the dividend...i don't get it...

ninja1024

that is the date after which dividend will not be paid. 2 days after that they compile the list of all folks who are eligible to receive the dividend - the Holder of Record date.

DEHP -> Declaration Date->Ex Dividend Date->Holder of Record Date->Payment Date.

CP

madaochenggong

To get the div you must be the holder of record on "holder date". The be the holder of record on that date you need to buy the stock the day before ex date (due to standard T+3 settlement).

So you will need to have your BUY order filled on the day before ex to show up on the books to receive the div.

redskins44

I always think of it as that you will need to wake up owning the stock on the ex-div date in order to receive that divided.

sameeragarwal

smileygladhands Wrote:
-------------------------------------------------------
> i swear there was something in schweser somewhere
> (and i maybe going nuts) saying the last day to
> receive the dividend was the day before the ex
> dividend date, 3 days before the holder of record
> date


you are right, guess it it is a badly framed question.
if I invest on ex div date, I wouldnt get any div.., as the last transaction date for div would be 1 day prior. And then T+3 days would be the holder of record date or 2 days from ex div date