To: Don Lloyd who wrote (93097 ) 11/16/2001 9:23:11 AM From: Knighty Tin Read Replies (3) | Respond to Don, Oh, no, Series 7 flashback. <g> Actually, this falls within my area of expertise as I used to be the king of Dividend Capture when I worked at The St. Paul. There are four key dates that confuse folks, ex-dividend date, record date, trade date and settlement date. Here is the trick: you buy or sell on trade date. But that action does not change your position on the company's books until settlement date, which is generally 3 business days after trade date. It used to be 5, but is now 3. O.K., to receive a dividend, stock or cash, or any co. distribution of any sort, including rights, you have to be a shareholder on the record date of that distribution. The co. has to have your name on the books. So, cos. and the market created the semi-official ex-dividend date. If you buy shares before ex date, you are entitled to the distribution. If you buy on or after ex date, the trade will not settle by record date, so you are not entitled.
