Share Dealing Discussion Area

kjkaye

Hi all, i am new to the site and need some help, we are wanting to sell some shares and have looked for a quote on Shareview.co.uk, they ask for you to put in a 'Deal Value' and a 'Deal Quantity' before you can get a quote, as i was doing it on my husbands behalf and didn't know what this meant i rang to ask, but because the shares were not in my name he wouldn't tell me, i said i only want to know what it means, still wouldn't tell me :mad: , so if for example i had 150 shares what would i put?

Thanks

thiskey

I understand that a share price marked "ex-dividend" or "xd" means a dividend has been issued and the value of that dividend is not included in the share price.

I am trying to find the valuation including a dividend, i.e. the "xd" share price PLUS any dividend value.

I'm using Yahoo Finance, which does not seem to mark any share as "xd", and does not seem to show any historical dividend data, despite one of its guides saying that it does.

However, according to Yahoo,

close quotes are not adjusted for splits or dividends.

Does this mean that close price includes the value of any dividend, i.e. the "xd" value plus the dividend value, which is the figure I'm looking for?

(Yahoo also has an additional column, Adjusted Close, that shows the close price adjusted for all splits and dividends. Does this mean the close price shown here is "xd"?)

Apologies if this is rather basic, I'm just trying to get my head round it all. Thanks in advance for any help.

sabretoothtigger

I believe FT.com will include dividends in a profit calculation

xd means the right to the div is no longer with the buyer of these shares. It can be months later any money is paid out

Biggles

The share price is whatever the market says it is on any day, it's determined by supply and demand.

The day it goes 'xd', anyone buying the share will find it worth less, to the amount of the dividend that a buyer can no longer expect to receive, and will obviously expect to pay less. But the price is just what the market wants to pay.

But there are so many factors affecting share prices that, due to market forces, the price may go down by more than the amount of the dividend or it may even go up on the day.

If you're looking for a source that adds the dividend amount back into the share price, I don't think it exists. Once the company has gone xd, that dividend is no longer relevant to anyone who doesn't hold the shares, and only relevant to those that do hold them until payday.

Or am I missing something?

thiskey

Biggles and sabretoothtiger, thanks so much for your input. I should mention that the reason I'm asking is because I'm looking for a probate (i.e. date of death) valuation, and that valuation should not be "xd" but should include the value of the dividend.

If you're looking for a source that adds the dividend amount back into the share price, I don't think it exists.

I was thinking that the Yahoo Finance data, which is "not adjusted for splits and dividends", is equivalent to the dividend amount being added back to the share price (or, put another way, the dividend is not taken away)... do you think I've got it wrong?

Biggles

For probate, you need the share price at the relevant date plus, if was xd at the time, the amount of declared dividend.

This is available from various sources, www.digitallook.com is probably as good as any, though Yahoo would show it too.

thiskey

Thanks again Biggles. So I guess the default Yahoo close price (which is not adjusted for dividends) is the probate value?

Biggles

It's not quite as simple as that:-
http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/shares.htm

thiskey

Ah, the quarter-up / weekend rules - very good point. But at least it seems that the close figures from Yahoo Finance (or FT or Google etc) is a perfectly good place to start, as they are not "xd". So if I apply the quarter-up rule etc to those figures, they should suffice for probate valuations. If I'm wrong, please let me know! Thanks again for your input - very much appreciated.

jsc77

Hi,
I'm looking to get into share dealing, but not sure how to start. Can anyone direct me to a decent, and up to date guide on how to buy and sell, fees, accounts etc.

The one at the start of this thread ('Cheapest Way To Buy and Sell Shares' article) doesn't look like it's been updated for a few years.

Cheers,
John