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If shares are sold ex-dividend who gets the declared dividend?...
Question
If shares are sold ex-dividend who gets the declared dividend? - Posted by GSPer
Answer
ANSWER 26th January 2012
Hi GSPer
There are two terms used in respect of dividend payment. They are Ex (without) and Cum (with). If you sell Ex then the seller is entitled to the dividend (the buyer doesn't). If you sell Cum then the seller is not entitled to the dividend but the buyer is.
I say entitled becuase that is the key. The company registrar can only go on the Books Closed date to establish who to send the dividend to. In the majority of cases this works, the perdon entitled to the dividend gets it. However there are some occassions where the dividend is sent to the person who is not entitled to it and in these cases there will be a 'market claim'.
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