After Hour Trading Before Ex-Dividend Date
I'm happy to report that if you missed normal hours trading just before the ex-dividend date, you can still purchase stocks in the after hour trading before the ex-dividend date. You'll still get the dividend.
I wasn't sure before, so a few weeks ago, I tested the theory. Fortunately, everything panned out and I got the dividend from the share I purchased during the after hour trading.
Full disclosure: I purchased IFN on October 6, 2008 in after-hour trading (5:13 PM EDT). IFN dividend showed up in my brokerage account on October 23, 2008. IFN's ex-dividend date was October 7, 2008. And its dividend date is October 23, 2008.
I have done the reverse. I sold a stock that I had owned in the pre-market on the ex-dividend date. This entitles me to the dividend, even though I sold before the market officially opened.
i believe the x-dividend date is calander determined so if you sell after hours on the day before the x-date you lose the dividend. if you buy early on the x-date you will not get the dividend. the of record date governs and that ignores the time of the trade. i have no idea how the exchanges handle time zones but suspect they use the actual trade date calculated in the local time of the exchange.
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