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| {{eqderivanat|10.1}}
| | #redirect[[Dividends - Equity Derivatives Provision]] |
| {{2002 ISDA Equity Derivatives Definitions Section 10.1 TOC}}
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| tThe difference betwixt? All to do with ''when'' a {{eqderivprov|Dividend}} is deemed to occur, and therefore which {{eqderivprov|Dividend Period}} it falls in. There are four crucial dates: The '''[[ex-dividend]] date''', the '''[[record date]]''', the '''declared date''', and the '''paid date'''.
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| *'''''Paid'' versus ''declared''''': Firstly, there is “'''paid'''” (which features in {{eqderivprov|Paid Amount}}) versus “'''declared'''” (which features in {{eqderivprov|Ex Amount}} and {{eqderivprov|Record Amount}}). One ''pays'' a dividend days or weeks after one ''declares'' it: hence the [[arbitrage]] opportunities between those taking cash and those taking scrip. So a {{eqderivprov|Declared Amount}} may fall in the {{eqderivprov|Dividend Period}} before a {{eqderivprov|Paid Amount}}. You have to choose which you want.
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| *'''Date ''declared'' versus date ''traded [[ex-dividend]]''''': A couple of days before a [[record date]] has been declared the {{eqderivprov|Share}} to which it relates will start trading “[[ex-dividend]]” on exchange (meaning a buyer will not get the dividend payment attaching to the share. Why a time ''before'' the record date? Because of the settlement time for an equity sale. The holder of record is the one holding the share — since it takes a couple of days to leave the seller’s account and hit yours, trading date on which that economic effect takes place has to anticipate the record date.
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| {{sa}}
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| * {{eqderivprov|Dividend Payment Date}}.
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Latest revision as of 09:07, 17 May 2022