How Do You Buy Stock Before Ex-Dividend Date?
Buying stock before the ex-dividend date is easy as long as basic rules are followed. The day count is important so that the investor clearly owns the stock on the ex-dividend date. That means that the stock must be purchased no later than the day of record. Remember that you must be the registered owner of the stock on the ex-dividend day even if you sell the stock later the same day. Look for the announcement of a dividend by a company with publicly traded stock or the dividend of a mutual fund. At the time of the announcement, the company will also announce an ex-dividend date. It is the shareholder of record on the ex-dividend date who receives the dividend. Note that stock dividends are usually issued quarterly. Mutual fund dividends are issued annually. At the time of the mutual fund declaration, there will also be a declaration of capital gains. The capital gains distribution will include long-term and short-term amounts. The price of the mutual fund will decline by the total am
