2006-09-30 23:17:59 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Dividend is money given to shareowners from the surplus the company generates.
There are many ways to look at benefits. You can look at it as an equivalent of interest that you get on fixed deposits. You are getting a part of the profits of the company.
Ex-dividend is used typically to denote the share price immediately after the payment of dividend - if the closing share price of say Sundaram Finance Limited was Rs 350 on say 31 July 2006 and they declared a dividend of Rs 5 with 31 July 2006 as the record date, then on 1 st august the share price would be ex-dividend, i.e Rs345.
2006-10-01 03:29:32 · answer #1 · answered by krishnarajv 1 · 0⤊ 0⤋
Company earns profits in a year from its operation. This profit is owned by the equity share holders of the company. But this profit is not received to each one of them. It is with the company untill dividends are paid. Dividends are the part of profits distributed among shareholders. It is a percentage of the shareholdings
Dividends are tax-free in the hands of investor. It is a source of income.
The market price after the dividend becomes ex-dividend price
2006-10-01 10:42:36 · answer #2 · answered by enLightened1 2 · 0⤊ 0⤋
dividend is the share of profits the company pays you for owning its share and you stand benefited by the monetary inflow. Ex dividend is referred to the date from which trading takes place without the benefit of receiving the dividend declared.
2006-10-01 08:01:40 · answer #3 · answered by cvrk3 4 · 0⤊ 0⤋
Dividend is the portion of the earning per share by the organisation which is paid to shareholders.
It benefits us as without affecting our holding we get cash.
When a share goes ex_div it means that the record date for the payment of dividend is expired and you will not get the dividend, which is declared but not yet paid.
2006-10-01 06:32:09 · answer #4 · answered by Bikash 1 · 0⤊ 0⤋
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2006-10-01 21:30:54 · answer #5 · answered by stock_trade_expert 3 · 0⤊ 0⤋
Divident is investors share in profits of a company. it is paid in % of amount invested in the company at the time of buying its shares.
Ex divident is the the market price of a share when the divident of that relevent year is already paid.
2006-10-01 07:39:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋