Salt Lake Telegram | 1925-02-20 | Page 11 | Money at Work

I Money 1 I I AT WORK I Brief but Important Lessons in m Finance Markets Stocks Bonds and Investments I I I 1 r- r STOCK I I If f L L- L OCi WHY WJ-ty THIS TI FLUCTUATION LUG TION I t j I Just as pie without ice ice cream brings a lower price than with ice ice cream so does a stock ex divi bring a lower price than one I cum dividend I I The market quotations at ns show some stocks to have sold ex divIdend some days When a corporation de declares declares de- de clares dares a dividend it is customary for forthe forthe forthe I the dividend to be payable let us say October 15 to stockholders of record October 1 1 Literally speaking speaking speaking speak speak- ing this means that those w wh who ho ow own n stock and In whose name the certificate certificate stands on the books bools on ort October October October Oc Oc- Oc- Oc tober 1 I. I will receive a dividend check checkon on October 15 15 Thus on October October October Oc Oc- Oc- Oc tober 2 the tho stock is sold to purchasers purchasers pur pur- chasers who will not receive a divIdend dividend divi divI- check on October 15 and the stock is Js said to be ex dividend The market price of ot the stock on the day clay it is is' is ex dividend usually discounts the loss of or dividends All other market factors being equal Ifa if ifa ifa a stock sells at 35 and carries with it a dividend check of 75 cents a quarter the day dao It it becomes bomes ex- ex I dividend the price will usually discount discount dis dis- count the dividend and sell at 1 Copyright 1925 Associated EdItors Editors Editors Edi EdI- tors Inc