What happens when a share goes ex-dividend?
The morning after a share goes ex-dividend (ex-div) the price of the share will drop by the amount of the dividend (approximately). With a quarterly contract, the dividend will have already been removed from the price quoted by Saxo Bank Financial Spreads so there will be no effect on the price quoted between the day before ex-div and the day after it. In the case of Rolling Daily products Saxo Bank Financial Spreads will credit clients who have long (buy) trades 80% of the value of the dividend and will debit from clients with short (sell) trades 100% of the dividend. For example, if Lloyds bank goes ex-div with a declared dividend of 7.5p, a client who was long (buy position) of £10 a point would receive £10×7.5×80% or £60. A client who was short the same amount (i.e. £10 a point) in Lloyds would be debited with £75 (£10×7.5×100%) Dividends on single shares will also affect the index of which they form a part. When a share goes ex-div then the index, of which that share is part, also
According to Investopedia, an ex-dividend is:
A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be given ex-dividend status if a person has been confirmed by the company to receive the dividend payment.
A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.
The morning after a share goes ex-div the price of the share will drop by the amount of the dividend (approximately). With a quarterly spread bet, the dividend will have already been removed from the price quoted by Capital Spreads so there will be no effect on the price quoted between the day before ex-div and the day after it. In the case of Rolling Daily bets Capital Spreads will credit clients who have long (buy) bets 80% of the value of the dividend and will debit to clients with short (sell) bets 100% of the dividend. For example, if Lloyds bank goes ex-div with a declared dividend of 7.5p, a client who was long (buy bet) of £10 a point would receive £10×7.5×80% or £60. A client who was short the same amount (i.e. £10 a point) in Lloyds would be debited with £75 (£10×7.5×100%) Shares on the FTSE go ex-div on the open every Wednesday morning and generally, the value of the shares in question will go down.
The morning after a share goes ex-div the price of the share will drop by the amount of the dividend (approximately). With a quarterly spread bet, the dividend will have already been removed from the price quoted by E*TRADE Spread Betting so there will be no effect on the price quoted between the day before ex-div and the day after it. In the case of Rolling Daily bets E*TRADE Spread Betting will credit clients who have long (buy) bets 80% of the value of the dividend and will debit to clients with short (sell) bets 100% of the dividend. For example, if Lloyds bank goes ex-div with a declared dividend of 7.5p, a client who was long (buy bet) of £10 a point would receive £10×7.5×80% or £60. A client who was short the same amount (i.e. £10 a point) in Lloyds would be debited with £75 (£10×7.5×100%) Shares on the FTSE go ex-div on the open every Wednesday morning and generally, the value of the shares in question will go down. This has a direct affect on the FTSE which tends to fall to re
The morning after a share goes ex-div the price of the share will drop by the amount of the dividend (approximately). With a quarterly spread bet, the dividend will have already been removed from the price quoted by FinancialSpreads.com so there will be no effect on the price quoted between the day before ex-div and the day after it. In the case of Rolling Daily bets FinancialSpreads.com will credit clients who have long (buy) bets 80% of the value of the dividend and will debit to clients with short (sell) bets 100% of the dividend. For example, if Lloyds bank goes ex-div with a declared dividend of 7.5p, a client who was long (buy bet) of £10 a point would receive £10×7.5×80% or £60. A client who was short the same amount (i.e. £10 a point) in Lloyds would be debited with £75 (£10×7.5×100%) Shares on the FTSE go ex-div on the open every Wednesday morning and generally, the value of the shares in question will go down. This has a direct affect on the FTSE which tends to fall to reflec
Related Questions
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- What happens when a share goes ex-dividend?
