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Shares purchased on ex dividend date

Ks (Ac) (138 Points)

27 February 2023

does investor is eligible for dividend if the share is purchased by him on ex dividend date ?

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Ayush (Executive ) (6760 Points)
Replied 28 February 2023

No, an investor is not eligible for a dividend if they purchase shares on the ex-dividend date or after.

When an investor buys shares of a company, there is a settlement period that takes place between the buyer and seller. This settlement period is usually two business days after the trade date. This means that if an investor purchases shares on or after the ex-dividend date, the settlement date will occur after the record date, and they will not be eligible to receive the dividend.