01 Stock DIV Flashcards
Annual DIV written as
$6 = ?
% of Par
6%
Reset Date
date of DIV adjustment for preferred stocks
(some have variable rates that are benchmarked on int)
transfer agent (3)
- cancel old & issue new
- ownership records
- distributes splits
registrar
makes sure co. does not issue more shares than authorized
net change
closing price from prev day
compared to current
Yeild
= Annual DIV /
CMV
Due Bill
stmt showing right to DIV
Stock DIV
same as cash unless
same as cash unless
25% + shares outstanding
or stock splits 5:4 or better
PE Ratio
SP $3
PE 14
MP ??
compares MP to earnings
14 x 3 = $42
Total Return
Buy @ $10
MP Rises to $ 12
DIV Paid $1
Stock Split Impact
- Value (# Shares x PPS)
- Number of Shares
- PPS - Price Per Share
- Value = same
- # Shares - change
- PPS - change
Forward Split
- # Shares
- PPS (Price Per Share)
Reverse Split
- # Shares
- PPS
Forward Split
Increase # Shares, Lower Price 5:4
Reverse Split
Decrease # Shares, Higher Price 1:10
Stock Split Formulas
Split Ratio (if given % DIV) 20% | 25%
Value
New # Shares
PPS
20% = 1.20 : 1
25% = 1.25 : 1
Stock Split Formulas
Split Ratio (if given % DIV)
Value
New # Shares
PPS
Value = (# Shares) x (PPS)
Stock Split Formulas
Split Ratio (if given % DIV)
Value
New # Shares
PPS
Stock Split Formulas
Split Ratio (if given % DIV)
Value
New # Shares
PPS
Stock Split
Calculate New Price Per Share
5:4 Split | 100 Shares @ $50
Ratio:
Value:
New Shares:
PPS:
Ratio 5:4
Value: 1000 x 50 = 5000
New # Shares 100 x 5 / 4 = 125
PPS 5000 / 125 = $40
New # Shares = (# Shares x 1st Number) / (2nd Number)
PPS = Current Value / # New Shares
ABC declared 25% stock DIV
new shares @ what price
100 @ $50
- Ratio
- Value
- # Shares
- PPS
Ratio: 1.25: 1
Value: 5000
# Shares: 100 x 1.25 / 1 = 125
PPS: 5000 / 125 = 40
ABC declared 20% stock DIV
new # shares & PPS
200 @ 60
240 @ $50
Ratio: 1.20 : 1
Value: 12,000
New Shares: 240
PPS: 50
New # Shares = (# Shares x 1st Number) / (2nd Number)
PPS = Current Value / # New Shares
Settlement
Regular Purchase
Cash
Regular Purchase
3 bus days after trade
Cash
same date as trade
DIV Payments
- Declaration Date
- Record Date
- Ex Date
- Payable Date
Co. Announces DIV
10 business days before distribution decisions (record date)
to FINRA
DIV Payments
- Declaration Date
- Record Date
- Ex Date
- Payable Date
determine who receives DIV
(who owns on this day receives, payable later)
10th business day after declaration
DIV Payments
- Declaration Date
- Record Date
- Ex Date
- Payable Date
purchase on this date or after no DIV
Set by NYSE
regular way - 2 days prior record date
cash settle - day after record date
DIV Payments
- Declaration Date
- Record Date
- Ex Date
- Payable Date
$ distributed
3-4 weeks after declaration date
Stocks trading above ?
1 share = 1 round lot
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