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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (4141)	2/5/1999 4:16:00 AM
From: CygnusX3	Read Replies (1) \| Respond to of 4969

<< I know that there are ways that the record date can be the same day. >> I have heard of immediate settlement for cash, but have not encountered it and don't know how feasible it is to do. In any case, I said that my comments applied to regular three-day settlement which is what the typical individual investor is doing. << But .. you say that the ex-dividend date is no more than three days before the trade date: >> No, I said that the ex-dividend date is the second trading day before the record date. In order to get the dividend, a buyer has to buy no later than the third trading day before the record date so that the settlement date will be no later than the record date. << So then if someone owns the stock and then sells it the day before the owner of record date, he is still the owner of record on the critical date. If someone else purchases the same shares on the same day, my guess is that neither person gets the dividend and the brokerage just keeps it for themselves .. correct? >> No, that is incorrect. As you said, the seller would be the owner of record on the record date, and therefore would get the dividend. Why would you think otherwise? Someone is always the owner on the record date and gets the dividend. The brokerage firm does not get it unless they are the owner.