Accounting for investments

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12 May 2012 Difference between Ex-Dividend and Cum-Dividend?

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12 May 2012 Ex dividend means we have not factored in 'dividend' in calculating cost or sale value of investment and cum dividend is opposite to it.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 May 2012 Ex-dividend means that the share is being sold without the right of dividend.

It means that the dividend will not be payable to the buyer but payable to the seller.

Cum-dividend is the exact opposite of ex-dividend.

The share is being sold with the right to receive dividend.

The buyer will be eligible to receive the dividend declared by the company.

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