Submitted by: Submitted by ars1989
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Category: Science and Technology
Date Submitted: 11/14/2013 01:13 AM
Five key dates every shareholder should know
- A raft of FTSE 100 shares recently passed their ex-dividend date. We explain what this means, and highlights four other dates that shareholders should add to their diaries
Why x-dividend dates exist, what happens and the effect on the share prices. A shareholder time table. It all starts with the financial year-end. Companies prepare accounts (balance sheets/profit-loss accounts).
2012 Year-End Audit 25th Feb 25th of April 27th of April 29th of June 6th July
Ex-Divi date
Record date
Annual general meeting Payment Date
CUM DIVI
EX DIVI
CUM DIVI
What follows is something called the year-end audit. That's when some highly paid professionals go in and take a look at the numbers, interview a few people and express an opinion on the financial statements. Who for? For the shareholders. So they basically take a look at all of the activities during the twelve months up to 25th of February and they issue a one page opinion that appears in the accounts for the benefit of the shareholders. Note, this is just an opinion, it's not a 100% sertification. The last x-dividend date was the 25th of April. This is for the final dividend that is going to be paid out based on profits up to 25th of February 2012. The x-dividend date is usually on a wednesday because the record date is usually on a Friday. We have the annual general meeting, and the date when the dividend is actually paid. Before the dividend can be paid (there is quite a gap between 25th of February and 6th of July), certain things need to happen. Number one, working backwards; At the Annual General Meeting, where anyone who owns a share gets to vote, wheter they agree with the final dividend that the company is proposing to pay. The shareholders might not. Just a word about the annual general meeting. Every shareholder has the right to turn up and to vote. You dont' have to turn up physically to vote, you can do it by proxy (you can vote through...