Book closure

[pasand]

Hi, this is my first post in this forum.

I have a few queries regarding investing in a stock near the book closure dates.

1. If I buy a stock today with its book closure from 1st June to 20th June.
Do I need to keep the stock till 20th June to be eligible for the dividend or I can sell the stock suppose on 2nd June itself and can still get the dividend?

2. Is the dividend paid during the book closure period or any time later?

3. What is the ex-dividend date? Do I need to stay invested in the stock till the ex-dividend date?

4. How soon one can sell the stock after getting eligible for the dividend?

 

[pasand]

Hi, I would appreciate if anyone here spares a little time to answer my query. I am planning to invest before a record date next month. Please help.

 

[sandhya_gujju]

did you get any info about this? if yes, kindly share.

 

[DSM]

Wiki definition :

Many publicly traded companies, and some privately held ones, pay dividends to their stockholders. The question of who should be paid dividends becomes complex, as these companies are continually being traded and the composition of their shareholders changes each day. To settle this question, companies designate a date, known as the record date. Dividends are paid to the holders of shares as shown on the share register at the record date. However it takes time for a stock purchase to be recorded on the register. To allow time for this processing, stock exchanges set a date—generally two business days prior to the record date—known as the ex-dividend date.

Hi, this is my first post in this forum.

I have a few queries regarding investing in a stock near the book closure dates.

1. If I buy a stock today with its book closure from 1st June to 20th June.
Do I need to keep the stock till 20th June to be eligible for the dividend or I can sell the stock suppose on 2nd June itself and can still get the dividend?

2. Is the dividend paid during the book closure period or any time later?

3. What is the ex-dividend date? Do I need to stay invested in the stock till the ex-dividend date?

4. How soon one can sell the stock after getting eligible for the dividend?

 

[gd.shepherd]

Hi, I would appreciate if anyone here spares a little time to answer my query. I am planning to invest before a record date next month. Please help.

Normally the stock trades with dividend factored in till the ex-dividend or book closure start date and after that stock trades down by the dividend amount. So unless you are in good profit from the purchase, the benefit would be very minimal.

You could check websites like moneycontrol.com to find out the dates of dividend.

Shepherd

 

[rvm123]

1. Normally in the stock exchange, ex-dividend date will be announced and from that date, whoever buys, they will not be eligible for the dividend. Book closure will normally be some days after the ex-dividend date to update the records of the company with the transfer of shares. So, rather than book closure, the ex-dividend date is more important to know the eligibility of dividend.

2. During book closure period the persons eligible for dividend will be determined. Payment will be made after that.

3. Those who buy the shares on or after the ex-dividend date will not be eligible for the dividend.

4. From the ex-dividend date onwards, you can sell the shares and be eligible for the dividend.