Friday, July 18, 2008

Cum and Ex date

If one buys shares during the cum dividend period, one will be entitled the dividends.

He or she can sell the shares on the Ex date, and still be entitled to the dividend.

Question, if one buys on the cum dividend date, and contra (sgx mkt) in the next day, which happens to be the ex dividend date, will one be entitled to the dividend still?

Ans: Yes, but most likely the share price on the ex date will drop.

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