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The date on which a {{eqderivprov|Share}} trade is priced to exclude a forthcoming {{eqderivprov|Dividend Amount}}, on account of the [[record date]] occurring before the trade can settle to the buyer’s account. A buyer of an [[ex-dividend]] {{eqderivprov|Share}} will not become the [[holder of record]] until after the [[record date]], and so won’t get the dividend payment, even though the {{eqderivprov|Dividend Payment Date}} may be after the buyer comes to hold the {{eqderivprov|Share}}. | The date on which a {{eqderivprov|Share}} trade is priced to exclude a forthcoming {{eqderivprov|Dividend Amount}}, on account of the [[record date]] occurring before the trade can settle to the buyer’s account. A buyer of an [[ex-dividend]] {{eqderivprov|Share}} will not become the [[holder of record]] until after the [[record date]], and so won’t get the dividend payment, even though the {{eqderivprov|Dividend Payment Date}} may be after the buyer comes to hold the {{eqderivprov|Share}}. | ||
Therefore, the buyer | Therefore, the buyer won’t want to pay for the implied cost of that pending dividend. Hence, it trades “[[ex-dividend]]”. | ||
See? | See? | ||
Interestingly, there is a SNAFU in the {{eqderivprov|Dividend Amount}} provisions of the {{eqdefs}} — there is a cacophony of cataclysmic SNAFUs there, truth be told, meaning that none of the payment triggers in that section — the Ex Amount, Record Amount or Paid Amount — make a great deal of sense. See {{eqderivprov|Dividend Amount}} for more on that riveting topic. | |||
{{sa}} | {{sa}} | ||
*{{eqderivprov|Dividend Amount}}, which goes into all of this in some really quite [[tedious]] detail. | *{{eqderivprov|Dividend Amount}}, which goes into all of this in some really quite [[tedious]], not to mention stupendously erroneous, detail. |