terms used in investment

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2010 hii..

i do not understand the terms used in investment;
1)ex.div
2)cum.div

and how do we have to treat them when dealing with ivestment accounts.

plz help me out.

CA. Chikkerur C R

CA. Chikkerur C R (Expert)

17 October 2010
Ex - Dividend - means "without dividend." The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend

Cum _dividend - With dividend

In Balancesheet - Investment will be shown at Cost if it is not held for trade. Dividend part should be removed from Cost when it is Cum Dividend

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2010 ok..

suppose if the shares are sold at ex.div on 1st march..and interest is given on 1st march.so who is going to receive the next interest?

CA. Chikkerur C R

CA. Chikkerur C R (Expert)

18 October 2010 In Ex Dividend - Buyer will not have right on dividend. So naturally seller of instrument will account the interest

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