What is ex -dend?

Ex-Devivdays determines which shareholders will be paid by a dividend division of a publicly traded company. Given that many shares of shares on the exchange of hands or trade quite often, the company must pay dividends date of restrictions that determines which shareholders are eligible for payment. Dividends are part of the investor's total revenue in stocks, and therefore ex-business is becoming increasingly valuable for an individual or institution that has safety when distribution is provided. These payments are advantages and not a requirement for any publicly traded entity. Before distribution, the Board of Directors must approve the payment.

Dividends are paid either in cash or stocks, although most distributions are primarily carried out in cash. If the company does not have cash reserves to distribute cash, but still wants to reward shareholders, it can do this by awarding hoses to investors with additional actions of their own capital. Sometimes, I tryD Cash or stocks are not options, the Company may distribute to shareholders in the form of a product or service it provides.

shares can be traded at will if the buyer and seller participate in each transaction. In order to monitor which investors hold capital in the company, the management leads a list of record holders with information about all shareholders. After performing the original store or sales of the store, it takes up to three days to record ownership in stock. As a result, confusion about who is eligible to obtain the payout of the company or paying the company's dividend could easily occur.

6 The former dividend of the company is announced a certain date on the calendar of ex-business. This date determines when the share of dividends will start trading without dividend, for all intentions and purposes. This means that if shareholders buy shares in the ex-expen dateEnda or after, are not eligible for the last dividend divide. Also, if the investor sells shares on or after or after the date, he or she is no longer entitled to this last dividend payout.

The day when the company reveals its intentions to make dividends to its shareholders is known as the date of statement. This is important because this is the date when the shareholder would like to be in the list of company records. Otherwise, he does not receive dividend. In order to appear on this list the shareholder's name must purchase security at least three days before the record date, a day when the company examines its list of records to determine who will receive the payment. The Record date falls one day before the ex-present date.