Ex-Dividend Bargains

An ex-dividend stock is one that is about to pay out the dividend. Not only this, those who buy the stock in that period are not entitled to receive a dividend.

This means that the stock will have the price reflected accordingly during this period as it will be slightly less attractive to those who don't currently own it.

Therefore the purchase plays the clean price minus the number of days from that of settlement.

And this is what is referred to as an ex-dividend bargain in the trade.

Don't worry if all these terms don't make sense the first time you read through or you quickly forget them, this is normal and basically through reading them all and getting a big picture on the financial bond markets they will all start to gradually register with you and make more sense.

Related Articles

How spot rates relate to forward rates
Equity Sweeteners Explained
Asset Securitisation
Relationship between bond price and yield
How to forecast the yield curve
Getting a Water Meter Fitted

More Stocks and Shares Articles