What is Dividend's announcement?
Dividend announcement is a formal process that the corporation controls in preparation for a record date of dividend shares. The notification is provided by the Single Practice Department in Nasdaq; This allows the stock market to set what is called the date of the ex-present associated with the dividend. Currently, companies are obliged to report this information no later than ten days before the actual date of record for share dividend.
Provision of dividend notifications at least ten days before the date of record is the key to ensuring that any dividend -related security transaction is completed in time. By issuing a formal announcement of NASDAQ, it is possible for the stock market to determine the date of the ex-business, publish the date, and provide all investors to the transaction until the possibility to complete them before receiving a record date.
Dividend announcement is a mechanism that is in the best interest of all investors with transactions waiting. The reason is that the stock price is affected as soon as reto the cord date. Dividend notifications allow investors to provide insufficient announcements to take steps to complete any security transactions, thus avoiding the price of the shares.
When investors decide to observe both the ex -dend date of the set NASDAQ and the record date confirmed in the dividend notice, it is possible to avoid wiring with the reduction of the unit value of the share. Sending this reduced value in stocks is important for investors with transactions waiting because they are not eligible to participate in the issue of dividends. Therefore, there is no income to cover a reduction in the value of shares if the company pays dividends from its cash reserves.
The issue of Dividend notifications is also in the best interest of NASDAQ. Market by receiving information on a record date for dividend issuing is ableHe gives enough time to decide how to approach the actions in question. Since there is no urgency in decision -making overnight, investors can consider all factors, so they do not pay the market for commands that may or may not affect the overall function of NASDAQ. From this point of view, the provision of dividend announcements is very important to help market to continue to work efficiently.