Monday, April 21, 2014

When a stock pays a dividen do they send the money to the holder of the stock.? and Free Texture #172

When a stock pays a dividen do they send the money to the holder of the stock.?



With stocks being traded so often, how do they know who gets the dividend.


Stock best answer:

Answer by Ja Ma
every dividend announcement specifies an "ex-dividend date" and the dividend is paid to the most recent owner of the stock prior to the ex-dividend date. if you sell the stock after the ex-dividend date, it is you and not the new owner that gets the dividend. if you sell just before the ex-dividend date, it is the new owner and not you that receives the dividend. of course in efficient markets the stock price around this date reflects the dividend effect.


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Free Texture #172
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