Rivulet Media Inc (fka RIVU)

[1~Eye~Jack!!]

~ BMSN = Fantastic Stock Dividend Information!!

http://www.sec.gov/answers/dividen.htm

20yearinvestor

Here is the whole page from SEC site intepret as you please.
pay close attention to the last 3 paragraphs.

Ex-Dividend Dates:
When Are You Entitled to Stock and Cash Dividends

Have you ever bought a stock only to find out later that you were not entitled to the next cash or stock dividend paid by the company? To determine whether you should get cash and most stock dividends, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."

When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information.

Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.

Here is an example:





Declaration Date

Ex-Dividend Date

Record Date

Payable Date



7/27/2004

8/6/2004

8/10/2004

9/10/2004


On July 27, 2004, Company XYZ declares a dividend payable on September 10, 2004 to its shareholders. XYZ also announces that shareholders of record on the company's books on or before August 10, 2004 are entitled to the dividend. The stock would then go ex-dividend two business days before the record date.

In this example, the record date falls on a Tuesday. Excluding weekends and holidays, the ex-dividend is set two business days before the record date or the opening of the market – in this case on the preceding Friday. This means anyone who bought the stock on Friday or after would not get the dividend. At the same time, those who purchase before the ex-dividend date receive the dividend.

With a significant dividend, the price of a stock may move up by the dollar amount of the dividend as the ex-dividend date approaches and then fall by that amount after the ex-dividend date. A stock that has gone ex-dividend is marked with an "x" in newspapers on that day.

Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).

If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.

If you have questions about specific dividends, you should consult with your financial advisor. You can also get information by going to your library and reading Standard and Poor's Dividend Record Binder.

---------------
Thank-you, 20yearinvestor, for this Honest Learning Experience & Sharing with everyone one to Help Teach!

20yearinvestor

Years ago I bought some at&t so I could get the wireless spinoff shares. I bought 3 days before the record date.
I was told by my broker it was ok to sale. before distrubution date I would still get my wireless shares because I bought 3 days before record date and he thought the ex-date was two days before the record date. If it was a cash dividend he would of been right.
Unfortunately, I sold the day before the dividend distubution date and lost my dividends to the buyer of my shares even though he was not the record holder. when I called my broker back to complain he refered me to the SEC site to learn the difference between a cash divi and a stock divi,
anyway you get the point. costly lesson for me.