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clock Created with Sketch. 04/10/18
20:06
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Originally posted by Teddyward
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Even after the ex div date you may via a broker buy shares cum div. It will have a shorter settlement date so it makes the cut off. In the old days when settlement was manual and took longer there was a specific trading code listed but it is still possible if using a full service broker. A lot of such trading used to happen because of stock lending and franking credits where overseas owners were unable to accrue credit and offsett against tax so they would over into a local nominee account as a example and nominee would collect frank credit and div and cash return 9X% back to original owner etc etc. There are other legitimate reasons like trading errors and incomplete orders to do the same and also in regards to shorting stock or physical settlement of derivative trades. Not sure if it is used often now but probably a dark pool option if a broker will make deadline for lodgement with registry. I have also done it with a urgent off market transaction related to a estate and a large capital return where estate would not have been able to take advantage of circumstances and be giving money away.
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Interesting. I probably should have qualified my statment by saying 'for on market trades', I presume you would pay a different price to market if you bought cum dividend via a broker on the ex date or before 11.30am on the record date?
(20min delay)