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What is the relationship between the record date and ex-dividend date in international trading markets?

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Question ajoutée par Ayman Salem Mohamed Ghanem , Freelance Lecturer and Business Consultant , Freelance
Date de publication: 2013/10/02
Zahid Hussain Palana
par Zahid Hussain Palana , Group Finance Manager , Ports Customs and Free Zone Corporation

Ex-dividend date is like a dividing line to establish the right to receive dividend

 

Record date is the date on which who will receive the dividend is determined.

 

Ex-dividend date is always prior to record date. If a transaction is completed before ex-dividend date, then the new owner of the security is entitled to receive dividend on record date. If transaction is completed on or after ex-dividend date, then the seller is entitled to receive dividend on record date.

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