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A stock is trading with a declared dividend, there are two important dates | A stock is trading with a declared {{eqderivprov|dividend}}, there are two important dates: the “[[record date]]” or “[[date of record]]” and the “[[ex-dividend date]]” or “[[ex date]]”. | ||
There is a charming {{tag|Latin}}ny feel to all of this, stocks trading “[[cum]]” (with) or “[[ex]]” (without) dividends, all based on when, relative to the ex date, you bought or sold them. | |||
The [[record date]] is the date by which a shareholder must be on the company's share register to receive the [[Dividend - Equity Derivatives Provision|dividend]]. Companies also use this date to determine who is sent [[proxy]] statements, financial reports, and other information. | The [[record date]] is the date by which a shareholder must be on the company's share register to receive the [[Dividend - Equity Derivatives Provision|dividend]]. Companies also use this date to determine who is sent [[proxy]] statements, financial reports, and other information. | ||
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If you buy a stock ''before'' its [[ex date]], you get the dividend. | If you buy a stock ''before'' its [[ex date]], you get the dividend. | ||
If you buy a stock ''on or after'' its [[ex date]] you will not receive the associated dividend payment. The [[seller]] will get it. | If you buy a stock ''on or after'' its [[ex date]] you will not receive the associated dividend payment. The [[seller]] will get it. | ||
===Cautionary tale=== | |||
Incidentally, beware [[cum-ex trade]]s, which are (a) highly illegal and (b) liable upon a cursory google to take you to parts of the world wide internets that your compliance department might not appreciate you visiting. Especially, I hear, if you google "“Danish Cum-Ex”<ref>If you dare,{{google|Danish_Cum_ex}}</ref> or “German Cum-Ex”<ref>If you dare, {{google|German_Cum_ex}}</ref>. In any case fertile ground for [[double entendre]]s if you have any literal-minded [[US attorney|American]]s in your office you fancy having fun at the expense of. | |||
{{seealso}} | {{seealso}} |