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Online Share Trading

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Mittal Dividend of 12%

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asylum
Super Contributor
Can anyone tell me if i understand this correctly. In the sens mittal says you have to own the shares from the 24th of august up until the the 1st of september. That means that there will ne no trading on mittal for a week. Now if that is correct and the market lets say goes down another 10% in that week surely there will be a mad scarmble to unload shares come the 1st of september. Or have i got the cat by the tail?
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14 REPLIES 14
john_1
Super Contributor
The bull by the udder.
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asylum
Super Contributor
For you i kill the bull. For your cheap shares i kill you.
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Not applicable
So if you buy on the 13th you get 12%?
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SimonPB
Valued Contributor
? you have to own the shares at close on LDT and you then receive the dividend.
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asylum
Super Contributor
Yes harrytrader thats right but my question is will there be any trading on the shares for the week that you have to hold the shares.remember harry you have to hold on to those shares until the 1st of september to get the 12% divi.
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Not applicable
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SimonPB
Valued Contributor
shares continue to trade
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asylum
Super Contributor
Now you see Simon this is where im confused they say you have to hold for a week to get the divi so the guys that buy or sell in that week just wont get the divi. Light bulb just came on.
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SimonPB
Valued Contributor
No, you don't have to hold for the week. Here with the announcement.

Payment in South African Rands of both the initial capital reduction of 1021 cents a share and the dividend distribution will be made on Monday, 3 September 2007 to shareholders recorded in the register on Friday, 31 August 2007. The last day of trade to qualify for the dividend will be Friday, 24 August 2007 and the shares will trade ex-dividend from Monday, 27 August 2007. Share certificates may not be dematerialised or rematerialised between Monday, 27 August 2007 and Friday, 31 August 2007, both days inclusive.

The last day to qualify is 24 Aug (you hold at the close on this date you get the div). They will pay to share holders registered on 31 August, but note there is no materialization happening between last day to trade and record date. So you can trade the share but with T+5 (five days before actually ownership changes hands after a sale) there is no updating the register.

Bottom line when you buy or sell is not important. As long as yopu hold on LDT (24 Aug in this case), you get the div.
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asylum
Super Contributor
Thanks Simon so what do they mean by the following: Share certificates may not be dematerialised or rematerialised between Monday, 27 August 2007 and Friday, 31 August 2007, both days inclusive. Thanks
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saash
Super Contributor
If you want that div, just make sure you own the shares on the close of 24 Aug. The div will only be paid into your account on 3 Sept, and provided you had the shares on close of 24 Aug, you will be paid your dividend. Even if you bought the shares on 23 Aug, and then sell them on 25 Aug you will still get the dividend. The shares will continue to trade normally during the LDT date and the payment date, the expected dividend will have been taken into account in the trading price all along, and so the morning after LTD the share may open equivelent % down - but that is not always the case, it might be down more, or even go up - depending on the market. OMO
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SimonPB
Valued Contributor
that changes of ownership will not be recorded. BUT ownership can change hands (buy/sell), just nothing recorded for that week.
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asylum
Super Contributor
Thanks Simon that helps.
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SimonPB
Valued Contributor
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