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Contract effected Ex-Dividend

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I've just put a lump sum into an equity income fund on IWeb. The trade confirmation says 'This contract was effected "Ex-Dividend"'. I know what the Ex-Dividend date is in relation to dividend payments but I'm not sure what IWeb mean by the contract being effected Ex-Dividend. Can anybody enlighten me, please?


Comments

  • underground99
    underground99 Posts: 404 Forumite
    100 Posts Name Dropper
    It means you are buying a share of the company WITHOUT entitlement to the most recently announced dividend.  Once it went ex-div, shares are bought and sold 'ex' (without) entitlement to getting that next dividend payment; the payment is only going to be received by people who held it at the record date.
  • Umiamz
    Umiamz Posts: 594 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    Ah, OK - that's what I expected, anyway. Thanks for the explanation.
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