THIS SHOULD CLEAR IT UP! I went to the Wiki link and read the section pertaining to this and here it is:
For special dividends, the ex-dividend date is set according to the size of the dividend in relation to the price of the security, and dividends or distributions of less than 25% are subject to the 'regular' rules for ex-dividend dates.
However, dividends or distributions of more than 25% are subject to 'special' rules for ex-dividend dates. The major difference here is that for these larger distributions or dividends the ex-dividend date is set as the day after payment.[3]
For these larger 'special dividends', the ex-dividend date is one stock trading day after the dividend date (the date on which dividend payment is made, typically after the record date). The stock will trade on an ex-distribution basis (adjusted for the amount of the dividend paid) on the trading day after the dividend date.
To be entitled to a special dividend of less than 25%, you need to be a stockholder on the record date. To be a stockholder on the record date, your purchase would need to have been made a minimum of three business days prior to the record date. The ex-dividend date, i.e. the first date in which a new buyer of shares would not be entitled to the dividend, is two business days prior to the record date (see ex-dividend date for exceptions).
In the case of a special dividend of 25% or more, special rules apply. If you sell stock after the record date but before the ex-dividend date, your shares will be sold with a book entry sometimes called a "due bill," which denotes that though the company will pay the dividend to your account (as the shareholder of record), your account must, in turn, turn that dividend over to the buyer of your stock. Conversely, if you buy stock after the record date but before the ex-dividend date of a large special dividend, you are entitled to the dividend and will receive it via the due bill process.
As is the case with all dividends, selling your stock prior to the ex-dividend date relinquishes your right to the dividend. The earliest you can sell your stock and still be entitled to the special dividend is the date the stock begins trading on an ex-distribution basis, or one day after the dividend date, on the ex-dividend date.
In simplest terms, the "record date" usually, but not always (because of the case of large special dividends), determines who is entitled to a dividend. The ex-dividend date always identifies who is ultimately entitled to receive a dividend.
Since the Divy is a $1 Share of the spin off, it would qualify as more then 25% rules. the second part in red reads what has been said by others, buying up to the dividend payout date you will get the Divy, if you sell you lose your Divy to whoever buys your shares and MM's will be in the same boat. So to get and keep your Divy, buy and hold before tomorrow EOD to be sure.
So my assumption is wrong.
DC
AI
