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Trading cum div/ ex dividend
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Sam_Kibs
#1 Posted : Wednesday, July 01, 2015 7:41:31 AM
Rank: New-farer


Joined: 7/1/2015
Posts: 67
new in the forum. help understand on trading of shares cum/ex dividend.

my friend bought shares precisely KAPC, dividends declared plus a bonus shares of 1:1 books closing on 30/6/2015. whats the implication of selling the shares now since the AGM is later this month. who will get the bonus shares and the dividend?

lastly will the bonus issue affect the share price and to what extent?

will appreciate your feed back
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then goes off and boasts about the purchase-Proverbs 20:14
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nyakosh
#2 Posted : Wednesday, July 01, 2015 9:13:55 AM
Rank: New-farer


Joined: 8/14/2013
Posts: 20
Location: Copenhagen
as long as you hold the shares at close of business day of the said date, you definitely will get the bonus and dividend even if you sell them.
Only when its trading subject to approval, then it means no exact date has been approved before the AGM
Problems can be very complicated, solutions cannot be.
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Aguytrying
#3 Posted : Wednesday, July 01, 2015 9:20:52 AM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
Sam_Kibs wrote:
new in the forum. help understand on trading of shares cum/ex dividend.

my friend bought shares precisely KAPC, dividends declared plus a bonus shares of 1:1 books closing on 30/6/2015. whats the implication of selling the shares now since the AGM is later this month. who will get the bonus shares and the dividend?

lastly will the bonus issue affect the share price and to what extent?

will appreciate your feed back


Selling now has no effect. he/she will still get the dividends and the bonus shares.This is NOT affected by the AGM date, books closing is what matters.
Your friend will get the bonus shares and the dividend.

The bonus issue WILL affect the share price. Theoretically The share should trade at half the price it was before, because the shares have DOUBLED (to retain the previous valuation). But in the real sense it will trade between that half and its price before bonus issue. See pan africa and crown paints
The investor's chief problem - and even his worst enemy - is likely to be himself
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guru267
#4 Posted : Wednesday, July 01, 2015 2:03:29 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Aguytrying wrote:
Sam_Kibs wrote:
new in the forum. help understand on trading of shares cum/ex dividend.

my friend bought shares precisely KAPC, dividends declared plus a bonus shares of 1:1 books closing on 30/6/2015. whats the implication of selling the shares now since the AGM is later this month. who will get the bonus shares and the dividend?

lastly will the bonus issue affect the share price and to what extent?

will appreciate your feed back


Selling now has no effect. he/she will still get the dividends and the bonus shares.This is NOT affected by the AGM date, books closing is what matters.
Your friend will get the bonus shares and the dividend.

The bonus issue WILL affect the share price. Theoretically The share should trade at half the price it was before, because the shares have DOUBLED (to retain the previous valuation). But in the real sense it will trade between that half and its price before bonus issue. See pan africa and crown paints


@Aguytrying I think these companies are still trading cum bonus but ex dividend.

So if you sell now you will earn the dividend but forfeit the bonus.
Mark 12:29
Deuteronomy 4:16
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Aguytrying
#5 Posted : Wednesday, July 01, 2015 3:33:23 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
guru267 wrote:
Aguytrying wrote:
Sam_Kibs wrote:
new in the forum. help understand on trading of shares cum/ex dividend.

my friend bought shares precisely KAPC, dividends declared plus a bonus shares of 1:1 books closing on 30/6/2015. whats the implication of selling the shares now since the AGM is later this month. who will get the bonus shares and the dividend?

lastly will the bonus issue affect the share price and to what extent?

will appreciate your feed back


Selling now has no effect. he/she will still get the dividends and the bonus shares.This is NOT affected by the AGM date, books closing is what matters.
Your friend will get the bonus shares and the dividend.

The bonus issue WILL affect the share price. Theoretically The share should trade at half the price it was before, because the shares have DOUBLED (to retain the previous valuation). But in the real sense it will trade between that half and its price before bonus issue. See pan africa and crown paints


@Aguytrying I think these companies are still trading cum bonus but ex dividend.

So if you sell now you will earn the dividend but forfeit the bonus.


Thanks for that. Sam kibs, what i have written applies for ex-dividend and ex bonus
The investor's chief problem - and even his worst enemy - is likely to be himself
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