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Ex-Date, Record Date etc

Posted by: Art2Gecko
In reply to: Going_long_4_MFYS who wrote msg# 1397
Date:6/8/2007 1:43:45 PM
Post #of 1426

Some reading for your broker.

A few very relevant terms:

Ex-Date
Definition 1
For stock splits, the date that the share price changes to reflect the split.

Definition 2
For dividends, the first day of the ex-dividend period. The ex-date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-date, he or she will be ineligible for the dividend payout. Further, for all pending transactions that have not been completed by the ex-date, the exchanges automatically reduce the price of the stock by the amount of the dividend. This is done because a dividend payout automatically reduces the value of the company (it comes from the company's cash reserves), and the investor would have to absorb that reduction in value (because neither the buyer nor the seller are eligible for the dividend). Also called ex-dividend date.
http://www.investorwords.com/1817/ex_date.html

Record Date
Date set by the issuing in order to be eligible to receive a declared dividend or capital gains distribution. The date is also used by the NASD to set the ex-dividend date. Also called date of record.
http://www.investorwords.com/4095/record_date.html

Payment Date
The date on which a dividend, mutual fund distribution, or bond interest payment is made or scheduled to be made. Also called distribution date.
http://www.investorwords.com/3635/payment_date.html

Due Bills
A printed statement serving as evidence of the transfer of a security from the seller to the buyer. The statement details the breakdown of the amount owed by the buyer to the seller, such as security cost, dividends, interest, and any other charges.
http://www.investorwords.com/5528/due_bill.html

Rules from the NASD http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf