Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Cum. And Ex. - Terms Used in Capital Market Authority
These prefixes are written in front of other words as like capital, rights and dividends to qualify them."Cum" is short for cumulative, which means "inclusive of". "Ex" on another hand is short for excluding; such is the opposite of including.
During commerce these terms refer to rights of sellers and buyers of securities while these are sold before a dividend has been affected although after it has been declared. These terms are required with the fact that shares are sold and bought throughout the year, however companies just declare dividends after the ending of their financial year when profits can be determined, and payment of dividends may obtain place long after moreover they have been declared.
Ex Rights cum Rights: The Term "Rights" refers to the decision via the directors to raise new share capital on current market rates however to provide a prior option to existing shareholders to purchase a fixed number of shares at preferential rates beneath market values. Ex and Cum proceeding it refers to the sale of shares decision, however before the dividend.
Thus "Ex Capital" infers such the seller of shares has sold them excluding their right to get a bonus share issue that has been declared at the time of sale. "Cum Capital" then so he sells them inclusive of its right. Cum Dividend: These terms simply mean that the sellers of shares retain his right to getting the dividend on the shares he sells although the title to the shares has passed to the buyer reserve:
P.S. "Cum" anything shares provide the buyer above par value since his purchase comes inclusive of the rights to collect upon prior earnings. Therefore they are sold at higher prices than "Ex" shares.
Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f
Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem
the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if you have the incorrect answer then you cannot expect to get more than half marks. Project
objectives
Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se
1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually? 2 -A used car co
Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving
Evaluate the importance of leverage of financial management of a small scale company
Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend
Question: A deferred annuity policy is sold to a life aged 45 with the following benefits: • Basic payments start at $30,000 from age 65, increasing by $2,000 each year; •
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd