Kevin asked in Business & FinanceInvesting · 10 years ago

If a stock is sold between Ex-Div and Record Day, does the seller of those shares receive a dividend?

What is the purpose of Record day in regards to share holders?

3 Answers

  • 10 years ago
    Favorite Answer

    In the US Markets, Yes the seller receives the dividend

    When is comes to declaring and paying dividends there are four (4) major dates, three are set by the company and one set by the industry

    The company

    1-declares that the company will pay a dividend (declaration date)

    2-declares to whom the dividend will be paid (shares holders of record -record date

    3-the date the dividend will be paid

    The industry sets the dividend date so that records can be gathered to properly report the shareholders to the disbursing agent as of the record date

    So, on the X-Date the trades that are executed Will NOT include the dividend or buyers will not receive the dividend - the seller will receive it.

    For cash dividends the X-date if before the record date.

    Source(s): from the industry
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  • 10 years ago

    Ex dividend date is immediately after the record date.So,if the stock is sold after record date(which is ex-dividend date) the seller will get the dividend.

    Source(s): own experience
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  • 10 years ago

    it depends on which date time you gave the delivery instruction slip.

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