Hi all,

A bit confused with ex date & entitlement date.

ex-date = 29/10
entitlement date = 31/10
entitlement time = 5pm
payment date = 14/11

Meaning i have to hold the stock until 28/10. 29/10 i can sell already?
if i buy the stock on 27/10 and sell on 29/10. Will i still entitle dividend?
What is entitlement date and time?

Thanks in advance for all replies.

if i buy the stock on 27/10 and sell on 29/10. Will i still entitle dividend?

yes

thanks. what does the entitlement date means then?

Bookkeeping purpose.
Because of T+3, technically you are still a shareholder even if you have sold on 29/10.
But on 1/11 (T+4), since the sale transaction is cleared, you are no longer a shareholder.

Entitlement date is the date for company share registrar to look for the list of shareholders in CDS to determine the eligible shareholders.

Due to the fact share is not immediate transferred into our CDS whenever we trade share, it only incur after 2 days later, hence ex-date is "created' so that investors/traders in the market can know the last day they need to buy/have the share, in order to appear in the company share registrar book.

Summary,
Ex-date is the Cut off date for share trade.
Entitlement date - company registrar look for shareholders list for eligibility.

if I buy share, let say today but the ex dividend date tomorrow, can the company record my purchase as date today??
settlement I know T+2, but the ownership of share??

A share price before Ex-date: RM1.00
Div: RM0.10
Share price on ex-date: RM0.90

To be simple, buy before ex-date you'll get the div.
Buy on the ex-date aka share price after deduction of div, that means you don't get the div.

Ex means "excluding"

You buy the share on ex date, you are excluded from dividends.

Buy before ex date to get the dividends.

meaning, ownership of shares will tfr on the same date..
but, got dividend also no point if share price keep falling down..

This post has been edited by fms21: Apr 8 2021, 11:10 AM

you don't understand the concept of T + 2?
on ex-date, the share price will be "ex"ed or adjusted the amount of the dividend.

then after that it is based on the market to determine the movement of the share price.

i knew this..
let say rm1, dividend 5 cents, the price will drop to 95 cents on ex div date..

my point is, let say u buy rm1, price suddenly drop to 90 cents on ex div date, so, no point to have 5 cents dividend since share price dropped 10 cents..

can i ask you, share price is driven by?

Wanna clarify the real term of dividend n share.

-dividend is partly company profit and distribute to all eligible shareholder.

-share is company divided to small portion then sell to public.

Am i rite?

Dividend is company profit. Share price is share (company portion). Both r different thing.

My question:
Why share price will drop on exdate? Both r diff thing. Sorry im new bird. Hope lao ciao can clarify and tunjuk ajar sikit.

Kamsiah a lot

This post has been edited by hlmilk112: Apr 9 2021, 04:41 PM