Ex div

[sponono]

Simon: if a stock goes ex div (like Kumba did today) does it mean it's price is understated by the amount of dividend. Kumba is trading at about R252; does it mean buying KIO at R252 actually mean its value is R252 + the dividend of R7.5? If you hold a geared instrument does it mean the cost of the instrument would be adjustd down (if you are long) or up (if you are short)by an amount equivalent to the dividend?

[SimonPB]

under stated in that the price has fallen by that amount - yes .. with a CFD the value of the CFD will rise/fall in line as you either receive or pay the div .. warrants and SSF's have the dividend priced out of the product, so the fall due to div is ignored ..