Corporate Finance

[IFT Team]

Please use this discussion thread to ask and discuss queries related to Corporate Finance topic.

[Arif Irfanullah]

I hope your studies are coming along fine.  Find attached a CF quiz.

I'll share the PM quiz next week.

[aamir...@gmail.com]

On Sunday, June 2, 2013 11:28:23 PM UTC+4, IFT Team wrote:

Please use this discussion thread to ask and discuss queries related to Corporate Finance topic.

 

 

I'm confused about dividend chronology. As per my understanding there is a dividend declaration date at which dividend is declared. Then comes the EX dividend date which is the first day at which stock trades without dividends (the price of the shares comes down with the amount of the dividends rougly) and then after two days is the holder of record date at which the dividends cheques are dispatched to shareholders list as of that date. IS THE EX DIVIDEND DATE ONLY the DATE AT WIHCH THE PRICE OF THE SHARES COME DOWN WITH THE DIVIDEND AMOUNTS ONLY???? and has nothing to do with the ownership of the shares??? I'm confused. 

[Rizwan Ali]

I suggest if u can put up your question with an example. It may be you get the answer. You may also refer to Slide 8 of R39. or page 116 of CFA book of Corporate Finance
IS THE EX DIVIDEND DATE ONLY the DATE AT WIHCH THE PRICE OF THE SHARES COME DOWN WITH THE DIVIDEND AMOUNTS ONLY????  Yes. It is the first opening trade date with ex price (where opening price is not equal to last business day closing price due to ex dividend).

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Regards, Rizwan Qahir Ali
the gain is not worth the pain