Given that market is closed Monday and that 3 business days are required for settlement, I believe the following is correct:
Settlement Date Fever.
yes, cwn, I just re-read our friends postings from yesterday and, well.... "how soon did I forget".
Nothing today indicates the righteous purity of her beliefs has been sullied.
"did you see that simply_int just honored the message board by quoting the same passage we have linked and or quoted about twenty times? I guess it wasn't actually relevant and true until she found it herself."
Yes, but that passage doesn't address what she was (wrongly) claiming yesterday, that you have to buy a stock three days before the ex-date to qualify for a dividend, so there's no reason to believe she's seen the light. I doubt she has.
May I get some of your thoughts about the logistics of exercising the Warrants. According to the AIG Corp site, " all or part of the Warrants may be exercised by delivering a completed form of election to purchase common stock AND payment of the then current exercise price to the Warrant Agent.
Some are confusing the phrase that the stock will be trading ex-dividend on the 20th with the ex-dividend date. The actual ex-dividend date was Friday, yesterday. Despite being down, the stock set a new high if the value of the warrant (a little more than half a warrant per share) is included.
"Some are confusing the phrase that the stock will be trading ex-dividend on the 20th with the ex-dividend date. The actual ex-dividend date was Friday, yesterday."
No. you're the one who is confused. That's exactly what "trading ex" means. Nothing different, nothing special. If you'd read back a couple days on this board, you'll find that the 20th is in fact the ex-dividend date.
"Given that market is closed Monday and that 3 business days are required for settlement..."
No, the three day settlement rule does not apply to ex-dates. Ex-dates are real-time dates that already take into account T+3.
Here, read these posts: http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_%28A_to_Z%29/Stocks_A/threadview?bn=632&tid=562434&mid=562703
I wrote this one last month for OXPS, which was trading with a deferred ex-date, just like AIG is right now. Just substitute the relevant AIG dates for the ones mentioned in this post and it works exactly the same. http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_O/threadview?m=tm&bn=51306&tid=3005&mid=3047&tof=1&frt=2
Finally, this link explains how and why deferred ex-dates work. The part about cash dividends of 25% or more applies to this distribution of warrants by AIG. (It also applies to certain other non-cash distributions even when they're not 25% or more of the stock's price; that's why it applies here.) http://groupssa.com/understandingdividenddates.html
who_gnu_1235, you need to study up on deferred ex-dates and the due bill process and get back to us.
The warrant is the right to buy share. The company did not give out any actual value. I don't understand how they calculate the ex-dividend price.
Below are my queries:
Company A paid $1 dividend then the share value deducted $1 in ex-dividend. If the share price will be adjusted according to the value of the warrant (let's say $20), then the Government owns 1.6 billions shares will drop $20 but they do not own any warrant. Does it make sense?
The link given was helpful but did not mention that there will not be a one for one exchange. The SEC report states that for each share of AIG held on record Jan 13th 2011 there will be issued 0.533933 warrants that give the shareholder a right to purchase one share of common at an initial price of $45.00. The link implies a one for one exchange.