Stock dividend is distribution of profit among the investors as shares rather than cash which increase the ownership right of holder of shares as well. Bonus means some thing extra than normal regular income. If some one earning 100 euro per month and he knows in December he will get some extra money from his employer for new years festival,that extra amount what he gets will be his bonus.
Stock dividend reduce retained earning and fulfill firms obligation to pay dividend. where bonus is a source of motivation for workers.
Ex-stock dividend is equal to the price of the dividend of the stock, the only difference is the face that the dividend is actually paid to the seller rather then the buyer of the stock.
A holder of SAR's is not entitled to dividends/distributions, whereas...a holder of phantom stock will be entielted to an equivalent dividend/distribution payment.
Bonus shares is a form of divendends paid in shares while stock split is when the price of a stock goes too high and the company wants to lower the price of the stock. However, some companies do not split their stock. For example, Berkshire Hathaway.
dividends are the payments made from the profits in which a person owns stock, and capital gain is the increase in value of a capital asset.
Dividend on common stock has to be more than dividend on preferred stock because of higher risk involved in equity investments.
Ex-stock dividend is equal to the price of the dividend of the stock, the only difference is the face that the dividend is actually paid to the seller rather then the buyer of the stock.
Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
A holder of SAR's is not entitled to dividends/distributions, whereas...a holder of phantom stock will be entielted to an equivalent dividend/distribution payment.
Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
Bonus shares is a form of divendends paid in shares while stock split is when the price of a stock goes too high and the company wants to lower the price of the stock. However, some companies do not split their stock. For example, Berkshire Hathaway.
dividends are the payments made from the profits in which a person owns stock, and capital gain is the increase in value of a capital asset.
Cum-dividend (CD) comes before Ex-dividend (XD). A stock is said to be CD indicates that the company is paying out dividend in the near future which serves like a preempt notice to investors. The company would have announced the amount of dividend to be paid out but has yet to. If the shareholder sells a CD stock, he/she is not entitled to the dividend. There has to be a cut off date that the company has to set, so as to confirm the list of shareholders to receive dividend. When the list is finalized, the stock is said to go XD. Once XD status is declared, the shareholder who sells his/her shares will still be entitled the dividends, while the new owner will not.
The ex-dividend date is the day after which all shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. This is an important date for any company that has many stockholders, including those that trade on exchanges, as it makes reconciliation of who is to be paid the dividend easier. Prior to this date, the stock is said to be cum dividend ('with dividend'): existing holders of the stock and anyone who buys it will receive the dividend, whereas any holders selling the stock lose their right to the dividend. On and after this date the stock becomes ex dividend: existing holders of the stock will receive the dividend even if they now sell the stock, whereas anyone who now buys the stock now will not receive the dividend. It is relatively common for a stock's price to decrease on the ex-dividend date by an amount roughly equal to the dividend paid. This reflects the decrease in the company's assets resulting from the declaration of the dividend. However it must be emphasised that there is no direct link between the price and the dividend, this price movement is simply a result of market action. To sum up the date a dividend is paid is not the date a stock usually goes down but rather the date that the stock purchase no longer includes the dividend. This in no way is a guarentee a stock could be up considerably that day based on market conditions and a number of other things even with the downward pressure of no longer being able to receive that dividend.
The Ex date is the last day which the seller will get the declared dividend. It is generally two trading days before the record date. The record date is the date which the dividend is assigned to the owner on the company's record books. The difference exists because of the time lag between the actual sale of the stock and when it's recorded on the company's books. So if you buy a stock on the day after the Ex date, the seller will still get the dividend because his/her name will appear on the company's books on the record date.
no difference
yes!
No, the definition of ex-dividend date is trading without the dividend. Any stock purchased "ex-dividend" date is not entitled to the dividend. AND equally as importantly OFFSETTING this - is the insatnt that happens the stock price is reduced by the amiunt of the dividend being paid. NO you cannot "steal" a dividend - that is buy it the day before the divideden gets paid (or ownership date actually) - and sell the day after - all you do is get the dividend and the equally lower stock value.