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Template:Dividends on index transactions: Difference between revisions
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Template:Dividends on index transactions (view source)
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==={{eqderivprov|Dividend}}s on {{eqderivprov|Index}} {{eqderivprov|Transaction}}s? ''No'', sir.=== | ==={{eqderivprov|Dividend}}s on {{eqderivprov|Index}} {{eqderivprov|Transaction}}s? ''No'', sir. But ''yes'', sir.=== | ||
We shouldn’t really ''need'' to say it, but we will: You don’t — well ~ cough ~ ''shouldn’t'' — get [[dividend]] payments on an {{eqderivprov|Index Transaction}}. The {{eqderivprov|Index}} calculation methodology will either replicate the effect of dividend reinvestment on {{eqderivprov|Index}} constituents, by proportionately re-weighting constituents when they pay dividends — in which case you will get the effect of those dividends just through “price return” of the {{eqderivprov|Index}} level — or it ''won’t'', in which case you ''won’t'' get the effect of those dividends, BECAUSE YOU BOUGHT A DERIVATIVE OF AN INDEX THAT DOESN'T REPLICATE THE EFFECT OF ANY DIVIDENDS.<ref>The S&P 500 index, for example, does not factor in any [[dividend]] payments. Apparently.</ref> | We shouldn’t really ''need'' to say it, but we will: You don’t — well ~ cough ~ ''shouldn’t'' — get [[dividend]] payments on an {{eqderivprov|Index Transaction}}. The {{eqderivprov|Index}} calculation methodology will either replicate the effect of dividend reinvestment on {{eqderivprov|Index}} constituents, by proportionately re-weighting constituents when they pay dividends — in which case you will get the effect of those dividends just through “price return” of the {{eqderivprov|Index}} level — or it ''won’t'', in which case you ''won’t'' get the effect of those dividends, BECAUSE YOU BOUGHT A DERIVATIVE OF AN INDEX THAT DOESN'T REPLICATE THE EFFECT OF ANY DIVIDENDS.<ref>The S&P 500 index, for example, does not factor in any [[dividend]] payments. Apparently.</ref> | ||