Help wih Ex-date - Please

supaTrade · #1 3rd February 2007, 10:07 PM

Dear forum members,

I need some help understaing this "Ex date" for stocks. See this example and please explain me. Suppose a stock has Ex date for dividend on 15th feb.

What will happen if,

1) I buy it on 13th and sell on 16th
2) I buy it on 15th and sell on 16th
3) If I buy it on 13th and sell it on 15th
4) If I buy it on 14th and sell on 15th
5) I buy it on 15th and sell it on 15th (i.e. intraday)

Is the result same for all ex date types, i.e. stocks bonus, cash bonus, dividends, splits, mergers etc.?

This question may seem childish, but please help me understand.

Thanks for your time.

- Supatrade

Agilent · #2 3rd February 2007, 11:08 PM

Quote:

Originally Posted by supaTrade

Dear forum members,

I need some help understaing this "Ex date" for stocks. See this example and please explain me. Suppose a stock has Ex date for dividend on 15th feb.

What will happen if,

1) I buy it on 13th and sell on 16th
2) I buy it on 15th and sell on 16th
3) If I buy it on 13th and sell it on 15th
4) If I buy it on 14th and sell on 15th
5) I buy it on 15th and sell it on 15th (i.e. intraday)

Is the result same for all ex date types, i.e. stocks bonus, cash bonus, dividends, splits, mergers etc.?

This question may seem childish, but please help me understand.

Thanks for your time.

- Supatrade

U will not be entitled to any of the resp benefits if u buy 'ex' or 'x' i.e. on or after 15 th ( I think usually the x quotaton kicks in at the start of the trading day, in this case 15th)

It dusnt then matter when u sell

Remember .. u cant have yr cake and eat it too ... if u think hard enuf, u will understand this analogy

AGILENT

Agilent · #3 3rd February 2007, 11:09 PM

Quote:

Originally Posted by supaTrade

Dear forum members,

I need some help understaing this "Ex date" for stocks. See this example and please explain me. Suppose a stock has Ex date for dividend on 15th feb.

What will happen if,

1) I buy it on 13th and sell on 16th
2) I buy it on 15th and sell on 16th
3) If I buy it on 13th and sell it on 15th
4) If I buy it on 14th and sell on 15th
5) I buy it on 15th and sell it on 15th (i.e. intraday)

Is the result same for all ex date types, i.e. stocks bonus, cash bonus, dividends, splits, mergers etc.?

This question may seem childish, but please help me understand.

Thanks for your time.

- Supatrade

U will not be entitled to any of the resp benefits if u buy 'ex' or 'x' i.e. on or after 15 th (I think usually the x quotation kicks in at the start of the trading day, in this case 15th)

It dusn't then matter when u sell

Remember .. u cant have yr cake and eat it too ... (if u think hard enuf, u will understand this analogy)

AGILENT

leelakumari · #4 3rd February 2007, 11:12 PM

dear friend,
i am new to traderji and share trading.
is that ur asking abt record date?
hope to discuss and debate a lot of things thru this site
tc
happy trading
lk

supaTrade · #5 4th February 2007, 12:41 AM

So if I buy on 14th and sell on 15th, I still get the benefits right? or do I have to sell on 16th?

Quote:

Originally Posted by Agilent

U will not be entitled to any of the resp benefits if u buy 'ex' or 'x' i.e. on or after 15 th ( I think usually the x quotaton kicks in at the start of the trading day, in this case 15th)

It dusnt then matter when u sell

Remember .. u cant have yr cake and eat it too ... if u think hard enuf, u will understand this analogy

AGILENT

Agilent · #6 4th February 2007, 03:24 PM

Quote:

Originally Posted by supaTrade

So if I buy on 14th and sell on 15th, I still get the benefits right? or do I have to sell on 16th?

No u can sell the moment it is quoted 'x' , which means start of day on 15th

U will get all announced benefits

Of course u are aware that the market rate usually gets adjusted (thru demand /supply forces) to offset these benefits ... so u may not gain immdtly

Clear ?
AGILENT

supaTrade · #7 4th February 2007, 06:54 PM

Its now crystal clear. Thank you so much! u r great!

Agilent · #8 4th February 2007, 10:55 PM

Quote:

Originally Posted by supaTrade

Its now crystal clear. Thank you so much! u r great!

ALways a pleasure

AGILENT

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