Hi,
I’ve a query about the ex-date & Record date on this article.
Ex-Date or Ex-Dividend Date: As the name suggests, Ex-Dividend date is the date on which the stock trades without the dividend included in it. Normally the price of the stock will drop to the extent of the dividend declared on the ex-dividend date. You will have to ensure that you buy the stock before the Ex-Dividend date to be eligible for the dividends. Important: You will NOT get the dividend in case you are buying the stock ON the ex-dividend date.
Record Date: Normally there’s a certain amount of time involved between when the shareholder’s buy stock and when their names are registered in the company’s records. Dividends are paid to shareholder’s whose names appear in the company’s records as on the Record date.
Record date is normally 3-4 days after the ex-dividend date. If you buy the stock by Ex-Date, you can expect your name to be in the Company’s record by the Record Date.
Query:
The above both of the statements are confuse to me.
One is “You will NOT get the dividend in case you are buying the stock ON the ex-dividend date.” in ex-dividend date.
And another one is “If you buy the stock by Ex-Date, you can expect your name to be in the Company’s record by the Record Date”.
My doubt is, if I buy the stock on ex-dividend date. Am I eligible for dividend or not?
Then, why the record date is come on this term? And some company not defines the record date? Why?
I see the money control link some not shown the record date: http://www.moneycontrol.com/stocks/marketinfo/dividends_declared/