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Template:Capsule equity derivative dividend payments: Difference between revisions
Template:Capsule equity derivative dividend payments (view source)
Revision as of 22:44, 25 February 2020
, 25 February 2020→Manufacturing dividends under an equity swap
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*The '''[[record date]]''' (being the date on which a [[holder of record]] becomes entitled to a dividend payment); | *The '''[[record date]]''' (being the date on which a [[holder of record]] becomes entitled to a dividend payment); | ||
*The '''[[ex date]]''' (being the date on which the underlying shares trade clean of the dividend payment in the market, which will be one [[settlement cycle]] ''before'' the [[record date]]), and | *The '''[[ex date]]''' (being the date on which the underlying shares trade clean of the dividend payment in the market, which will be one [[settlement cycle]] ''before'' the [[record date]]), and | ||
*The '''[[dividend payment date]]'''<ref>Not to be confused with the {{eqderivprov|Dividend Payment Date}} in the {{eqdefs}}, being the date for the manufactured payment, not the payment of the underlying dividend itself.</ref> itself (being the date on which the underlying dividend distributions actually hit holders’ bank accounts) | *The '''[[dividend payment date]]'''<ref>Not to be confused with the {{eqderivprov|Dividend Payment Date}} in the {{eqdefs}}, being the date for the manufactured payment, not the payment of the underlying dividend itself.</ref> itself (being the date on which the underlying dividend distributions actually hit holders’ bank accounts). | ||
The only one you should ever need is the {{eqderivprov|Paid Amount}}, | None of them, in the [[JC]]’s purblind view, works. | ||
The only one you should ever need is the {{eqderivprov|Paid Amount}}, as it references the date of actual payment of the underlying [[dividend]], and no {{eqderivprov|Equity Amount Payer}} with a sensible idea in its head will want to pay you sooner than that — but even that misses the significance to its payability of the earlier [[record date]]. You only are entitled to a dividend on the [[dividend payment date]] ''at all'' if you were the [[holder of record]] on the [[record date]]. | |||
Much of the fear, loathing and confusion in these definitions arises from sloppy drafting in relation to this and the other two options, which don’t make sense anyway. | |||
Also, note this: the [[ex date]] and the [[record date]] logically come ''before'' the [[dividend payment date]]. They will usually precede it by weeks, or even months. So if your {{eqderivprov|Dividend Period}}s are short (e.g., monthly), it is quite likely that the [[ex date]] and [[record date]] will fall in an earlier {{eqderivprov|Dividend Period}} than the [[dividend payment date]].<ref>And may fall before the {{eqderivprov|Transaction}} has even ''started''.</ref> | Also, note this: the [[ex date]] and the [[record date]] logically come ''before'' the [[dividend payment date]]. They will usually precede it by weeks, or even months. So if your {{eqderivprov|Dividend Period}}s are short (e.g., monthly), it is quite likely that the [[ex date]] and [[record date]] will fall in an earlier {{eqderivprov|Dividend Period}} than the [[dividend payment date]].<ref>And may fall before the {{eqderivprov|Transaction}} has even ''started''.</ref> | ||