Wazua
»
Investor
»
Stocks
»
XD,CD & book closure & payment date
Rank: Member Joined: 1/3/2007 Posts: 23
|
Skerians,please help me understand the relations between the above. In light of it,is KCB xd or cd currently and what is reflected in CDS holding? thks in advance
unlimited possibility
|
|
|
Rank: Member Joined: 5/7/2008 Posts: 54
|
@ Grand. kcb is currently trading cum div (cd). the books closure date is 11-05-09.This essentially means that anyone owning the share on or before 11-05-09 will qualify for the 1/= dividend per share.On 12-05-09 the stock will go ex dividend which means that any new shareholder wont be entitled to dividend. The dividend payout will be done on or the payment date which is 29-05-09. Hope this helps..
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
Very well,but one correction. On book-closure day,the share register is closed = no new names can be added,no names can be removed on this day. Therefore,only those whose names are in the register on this day will get the dividend. Those who had been there for the last 15 years but were removed the day before will NOT get anything! Thus @across,your assertion that ...'anyone owning the share on or before 11-05-09 will qualify for the 1/= dividend...' is not correct. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Member Joined: 5/7/2008 Posts: 54
|
@ mukiha..correction noted.thanks.
|
|
|
Rank: Member Joined: 12/7/2006 Posts: 48
|
good postings!!
question:
If kcb goes xd,how will it effect the share price??
|
|
|
Rank: Member Joined: 1/3/2007 Posts: 23
|
thanks for your insight!
unlimited possibility
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
@MUKIHA. U didn't come out clearly. If I sell on books closer day I don't get the dividends. If I buy on same day I get the dividends even if I sell a day later! Funny Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Member Joined: 9/21/2006 Posts: 422 Location: Nairobi
|
Book closure day means that no buying or selling is allowed on that day hence you cannot buy them or sell them on the closure day. U have to do it a day or days etc before the closure day. Closure means clossed!!!!!! jinga hii,or where do you come from?
The future is already here!
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
I thought I was very clear...books closure means no changes are allowed in the register on that day!!!!! You can buy,but you transfer can only be executed after books open...therefore you don't get the dividend. In the old days (before CDSC),books used to close for several days....some times up to one week! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
@Layman,Mukiha. Let's assume mimi ni jinga to start with. Then take BAT as an example. They closed their books on 27/03/2009. On this same day,27/03/2009,the stock sold 15,763 cd @ 152/= to 156/= as per info I downloaded from nse. What does that mean about 'book closer'? Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Member Joined: 2/12/2008 Posts: 345
|
@jerry...BAT books closed on 27th March 3pm. Meanin trade open till that time...same way way Equity books close 18th march 4pm thus open for trade all day. Closin books means 'freezin all shares as they are to verify who owns them at that time hence entitled dividends or any other benefit..split,bonus,rights etc.
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
I agree with you Jammo. Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
.....how about T+4....? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Member Joined: 2/12/2008 Posts: 345
|
T+4...when u buy shares...transfer and settlement from seller..plus verification that the shares being transfered to u hav no ownership drama..takes 3days..then on 4th day the shares are legally by all means yours to do with as u please.. Very crucial thing..i remember when i started out i was so jittery about holdin on to jubilee i put in sell order...a day later put a sell order again..sold same shares twice!! I also bought into kq..next day..put the order again...for money worth 1buy!! The drama wasn't fun! The rule acts to prevent 'mistakes by ignorance'..n probable fraud!
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
|
|
|
Rank: Member Joined: 2/12/2008 Posts: 345
|
@virji..
KCB price jana was 19.00... This is 'value' that the buyers,sellers,traders of the day agreed was most appropriate for the worth the share offers..including dividend of sh1.00
if u went to buy today at sh19.00 and found that u wouldn't get the dividend..since u weren't in KCB's register yesterday..why should u pay 19bob?..may be lower.
Usually befor the bookclosure..the counter experiences a seller's market..where the sellers determin the price after all..they r actually sellin the dividend factor only..
After book closure...the counter becomes a buyers market...the ones buyin determine the price...why buy at 19 yet i'm not gettin the dividend? Thus why KCB is likely to drop marginally on tuesday May 12...to adjust for loss of dividend to those who missed buyin befor 11th may.
Speculation enters thus..market will always correct itself..if share value drops with loss of dividend...market price has to reflect it..but within the same margin as loss of dividend hav on actual value or share..for we speculators..if u notice drop in market price to wide compared to actual apparent loss in value..we so buy like idiots on crack! Eg..fall to 15bob yet all other value factors remained constant or growing..market will sure correct this upwardly!!...makin a few cents in the process..eg..those who bought Equity at 11.50bob on thursday 16th April..compare to those rushin to buy now!...better yet to those who sold off between 6th and 7th at 17-19.50 bob and are buyin now. It's called makin money while guys are arguing the merits or lack there off of Eddie mundu's massacre thread.... Heh! Heh! Heh.
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
@jammo. Kindly tell us about PROMPT BOARD including how to qualify to place orders there. I hope it is not reserved for a certain class. Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Member Joined: 2/12/2008 Posts: 345
|
jerry... shares trade in lot sizes of 100 and multiples there of. However once in a while due to corporate action such as rights issues..bonus issues..ipos,spos..etc...u get allocated odd lots..eg minimum applications of kenya re got 456 shares...i think... Thus should u want to sell all..u'd sell 400 on normal board...the 56 would be sold through the prompt board. Prices on prompt board are usually different from normal board..since it's not normal to find someone buyin odd lots!! In most cases brokers buy these..n once odd lot shares are accumulated to normal lots..multiples of 100 ..they can be traded on normal board.
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
@Jammo. I actually thought PROMPT board was for large volumes of shares where terms r clearly defined(like cash assured .. .) and hence take less time to settle. Poor me. I actually sold 12 KENGEN and 79 KenRe yesterday after a long time of persistently making SELL orders online with D&B. Thanks jammo. Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
on T+4; the point I wanted to highlight was that if registered closes today - 23rd Apr - (for processing of divs etc),then only those whose purchase orders were executed four business days ago - i.e.,17th April - can be included in the div etc payout. Those who bought yesterday are buying XD Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Member Joined: 4/19/2007 Posts: 68
|
the board jammo reffers to is the ODD board,usually ignored in most of the NSE's statistics computations. PROMPT board is more or less a NORMAL board with T+1 settlemnt. You can ask your broker to 'sell prompt' when making your order (especially in these days of live info from NSE),however dealers can by discretion alter the PROMPTnes or NORMALness of an order
|
|
|
Wazua
»
Investor
»
Stocks
»
XD,CD & book closure & payment date
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|