Q: Purchasing a share on the ex-dividend date will entitle the owner only to the share, the dividend payment will go to the seller.
DOUBT- It is known that an investor will be entitled to the dividend when he buys share of the company before the ex div date.
It is saying the dividend will go to the seller if purchase on the ex div date….who is seller here??
You need to have the shares in your demat account on the record date if you want to enjoy dividends of the company . If you buy shares on the ex-dividend date, you won’t be entitled to the dividend. A person who sells the shares on ex-dividend date is entitled to the dividend. Seller could be anyone. It’s not known.
Ok..thanks