# Difference between "ex-dividend date" and "record date"?



## jun1031 (6 September 2010)

Hi all,

I am new at this and was wondering what exactly is the difference between the "ex-dividend date" and "record date". Does it mean that i get the share of the dividend if i own some share on the ex-dividend date?

Thanks

Jun1031


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## KurwaJegoMac (6 September 2010)

Hello Jun1031, welcome to ASF.

A great source to answer your question is the asx website. Here's the link that will explain dividends and some of the key information you need to know (such as ex-dividend date and record date).

http://www.asx.com.au/research/dividends/process.htm

Have a read through that and if you have any questions post back


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## nioka (6 September 2010)

jun1031 said:


> Hi all,
> 
> Does it mean that i get the share of the dividend if i own some share on the ex-dividend date?
> 
> ...




If you buy the share on the exdiv date you are too late to get the dividend. In fact you have to buy three days before the ex div date (t+3). You have to have the shares registered in your name on the record date.


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## pixel (6 September 2010)

nioka said:


> If you buy the share on the exdiv date you are too late to get the dividend. In fact you have to buy three days before the ex div date (t+3). You have to have the shares registered in your name on the record date.




Slight correction, nioka:
You can buy up until ONE day before ex-div; the t+3 rule will then ensure that you're on the books on record date. That's what "ex-dividend" means: Shares traded on or after that day are without (ex) the entitlement to a dividend. Some shares extend that rule by establishing a market "cum dividend", meaning such shares will still include the right to receive the dividend; but those shares are then given a differend code, e.g. BHPCD.

If you sell ON ex-div, you still receive the dividend because the transactions made on ex-div or later will NOT be processed before the register snapshot is taken.


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