Ex-Dividends
The Ex-Dividend date is the first day that the client buys the stock and will not receive the dividend.
Example: A stock is ex-dividend on September 20th
Open Orders and Ex-Dividends: The prices of all open orders to buy securities that have begun trading ex-dividend are reduced by the amount of the dividend by Trade Management.
Example: Client has an open order to Buy 1000 XYZ at $10, good for 30 days. This morning, XYZ went ex-dividend on its dividend of $0.34. The order will automatically be changed to "Buy 1000 XYZ at $9.66" ($10.00-$0.34)
Record Date and Ex-Div Date: The record date is the date that client must have the stock settled in their account in order to receive the dividend. To find the ex-date, go back two business days.
Example: XYZ stock has record date of Thursday Sept 23rd. Two days previous to that would be Sept 21st, which is the record date.
Example: A stock is ex-dividend on September 20th
- Client buys the stock BEFORE Sept 20th- they receive the dividend.
- Client buys the stock ON Sept 20th- they don't get the dividend.
Open Orders and Ex-Dividends: The prices of all open orders to buy securities that have begun trading ex-dividend are reduced by the amount of the dividend by Trade Management.
Example: Client has an open order to Buy 1000 XYZ at $10, good for 30 days. This morning, XYZ went ex-dividend on its dividend of $0.34. The order will automatically be changed to "Buy 1000 XYZ at $9.66" ($10.00-$0.34)
Record Date and Ex-Div Date: The record date is the date that client must have the stock settled in their account in order to receive the dividend. To find the ex-date, go back two business days.
Example: XYZ stock has record date of Thursday Sept 23rd. Two days previous to that would be Sept 21st, which is the record date.
posted by BCM at 11:16 AM
