Derivatives

Short Term IRS

December 10, 2022
Derivatives

Time Discount Option

December 10, 2022

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The date on which the holder of a stock will still receive a specific dividend payment. It is the first day of trading when the seller, rather than the buyer, of a stock will be entitled to receive the most recently announced dividend payment. A holder of the stock who sells on the ex-dividend date is entitled to get the dividend when it is paid. For an investor to claim a dividend that has been announced but not yet paid, a stock must be bought one day prior to the ex-dividend date. An investor buying a stock on the ex-dividend date will not receive the upcoming dividend. It would rather go to the seller.

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