No delivery perion in Stock Market?

Question

After Stock splits and Bonus shares are declared , right from the record day to some time there is no delivery period, if i hold some shares and want to book profits then how to do that? Also when rest of shares is not delivered to me in splits and bonuses.

Answer 1

I guess you are talking about US market?

If so...

You need to look at the ex-date, not just the record date. Normally on a stock distribution, the stock exchange sets ex-date 2 days after pay date.

You can sell the underlying shares after the record date, as long as you trade before ex-date. The trade will be done "with" bonus--and you will receive full value for the old shares plus the bonus shares.

This period between R/D and Ex/D is sometimes called the "interim period". If you sell your shares in the interim period, the buyer will receive the bonus shares, even though you were holder on record date.