Stock market

Secondary Mkt 528 views 4 replies

When no of Shares in Stock Market remains Same, what is the point of Asking "who will get dividend" and why concepts like Ex dividend date and record Date Exist. I mean, whether somebody holds or sell his stock in both the situation there will be someone who will hold share and will be known as shareholder and  entitled for Dividend.

Replies (4)

Dividend will be given to the person who is member on the record date.

When Company Announces the record date share prices are with cum dividend.after that i.e, day after record date share prices definetly fall because if buyer buy the share before the record date he is eligibe for accumalated profit of the company.if he buy on date of record date he is eligible for dividend.

After record date he is have share in accumalated profit less dividend distributed as cash.

So he pay less for ex-dividend share.

thanks
Originally posted by : Shubham Vishwakarma
When no of Shares in Stock Market remains Same, what is the point of Asking "who will get dividend" and why concepts like Ex dividend date and record Date Exist. I mean, whether somebody holds or sell his stock in both the situation there will be someone who will hold share and will be known as shareholder and  entitled for Dividend.

weill i think the logic is to eliminate complexcity of "who is the share holder and whom to pay?"

because in 0.5 second.... there may be thousands of shares trading ,

so they decide one particular day and they take closing holders of that day as record holders...

another reason is to have less price flctuations after declaring dividends...

Ok Thanks Every One..


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