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What does ex-right and ex-dividend mean? Is the ex-right and ex-dividend date good or bad?

2022-01-25

1721

Sometimes there will be some more English letters in front of the stock, such as xr or xd. At this time, investors should not panic. These two letters represent the ex-rights and ex-dividends of stocks. So what exactly does ex-rights and ex-dividends mean? Is the ex-rights and ex-dividend dates good or bad? This article will give you a brief explanation.

What does ex-rights and ex-dividends mean?

Ex-rights and ex-dividends are listed companies that distribute stock dividends to shareholders, that is, when the company's surplus is converted into capital increase, or when allotment is carried out, the stock price will be ex-right (XR), XR is EXCLUDE (remove) RIGHT (right) abbreviation. The listed company distributes the surplus to shareholders in cash, and the stock price will be ex-dividend (XD), XD is the abbreviation of EXCLUDE (removal) DIVIDEND (interest). Shareholders who purchase the company's shares on the ex-rights and ex-dividend date are not entitled to this dividend or allotment.

For the NEEQ companies who bought shares on the registration date of share transfer, they have rights, and those who sell do not enjoy rights. Basis: After the official implementation of the "Detailed Rules for Stock Transfer of the National Equities Exchange and Quotations (Trial)", the delivery mode has changed from "T+1 full non-guaranteed delivery" to "T+1 full guaranteed delivery".

Ex-rights and ex-dividend dates are good or bad

The ex-rights and ex-dividend dates are neither good or bad, because the essence of ex-rights and ex-dividends is to make corresponding adjustments to the stock price according to dividends, bonus shares, etc., without considering the ups and downs, the total assets of stock holders will not occur before and after the adjustment. Variety.

For example, 10 get 10, the stock price on the registration day is 20 yuan, the stock price will be 10 yuan after ex-rights and ex-dividend, and if the share price drops by half, the stock doubles, and the total assets remain unchanged, it is just a numerical change.

Of course, when the stock market is relatively good, a large proportion of dividends and bonuses is a very popular speculation theme, which will lead to the stock price being hyped. From this point of view, stocks with a large proportion of dividends are better, but the speculation is carried out in advance. Yes, it is really going to be ex-rights and ex-dividends. Whether it can continue depends on the specifics, and cannot be generalized.

The ex-rights and ex-dividend date is the trading day following the share registration date. On the ex-right and ex-dividend date of the stock, the stock exchange must calculate the ex-right and ex-dividend price of the stock as a reference for shareholders to open the market on the ex-right and ex-dividend date. Its meaning is the date on which the stock dividend is distributed to shareholders.

Now everyone should know what ex-rights and ex-dividends mean! Generally, when these two businesses are carried out, the personal interests of investors and the interests of stocks will not be affected by some markets, because investors are assigned to listed companies as usual, and give investors a part of dividends, so the fluctuations in the market will not be affected. the interests of investors. However, when listed companies conduct ex-rights and ex-dividends, investors still have to grasp the market conditions before investing.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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What does ex-right and ex-dividend mean? Is the ex-right and ex-dividend date good or bad?

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