Ex-Dividend and Ex-Rights Dates
Chapters in this video
- 0:00 Buying before the ex-date: the Carla trap
- 1:35 T+1 timeline: declaration, ex-date, record date, payment date
- 2:29 Due bills: when settlement fails the buyer
- 3:20 Ex-warrants vs ex-rights: the record date trap
- 4:16 Reduce below: which open orders get adjusted
- 5:55 DNR and the stock dividend curve ball
- 6:41 Reverse splits cancel everything: the Sam supervisor rule
- 7:54 Rapid-fire exam recap
What this video covers
- Why under T+1 settlement the ex-dividend date and the record date are the same day, and why buying on the ex-date means you miss the dividend
- How a due bill works as an IOU when a trade executes before the ex-date but settles after the record date, and the difference between a due bill and a due bill check
- Why ex-warrants dates key off the record date but ex-rights dates key off the effective date of the registration statement
- What "reduce below" means: only buy limit and sell stop orders sitting below the market are reduced by the dividend amount on the ex-date
- When Do Not Reduce (DNR) protects an order from cash dividend adjustments, and why DNR does NOT protect against stock dividend or stock split share adjustments
- When Do Not Increase (DNI) is needed to block share quantity changes from stock dividends and forward splits
- Why reverse splits cancel all open orders outright, requiring manual reentry by the customer
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