Dividend Stripping

Dividend Stripping
   A term used to describe a speculator's strategy whereby shares are purchased shortly before a dividend payment date, based on the belief that a much higher than normal dividend will be paid.
   ► See also Dividend.

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dividend stripping UK US noun [U]
FINANCE the practice of selling shares just before a dividend is paid, and buying them again afterwards, especially in order to avoid tax: »

The Dutch government issued a new proposal for measures against dividend stripping.

Financial and business terms. 2012.

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Look at other dictionaries:

  • Dividend stripping — is the purchase of shares just before a dividend is paid, and the sale of those shares after that payment, i.e. when they go ex dividend. This may be done either by an ordinary investor as an investment strategy, or by a company s owners or… …   Wikipedia

  • dividend-stripping — ˈdividend ˌstripping noun [uncountable] FINANCE when someone sells shares just before a dividend payment and buys them again after the payment in order to avoid paying tax on the dividend: • Dividend stripping is to some extent considered… …   Financial and business terms

  • dividend stripping — noun A method of evading tax on dividends by a contrived arrangement between a company liable to tax and another in a position to claim repayment of tax • • • Main Entry: ↑dividend …   Useful english dictionary

  • dividend stripping — bond washing The practice of buying gilt edged security after they have gone ex dividend (see ex ) and selling them cum dividend just before the next dividend is due. This procedure enables the investor to avoid receiving dividends, which in the… …   Big dictionary of business and management

  • dividend stripping — /ˈdɪvədɛnd strɪpɪŋ/ (say divuhdend striping) noun the practice of purchasing shares in a private company with the intention of declaring dividends from the company s accumulated profits to the new shareholder, and then selling the shares in the… …  

  • Dividend imputation — is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. In comparison to the classical system, it… …   Wikipedia

  • dividend — n. 1 a a sum of money to be divided among a number of persons, esp. that paid by a company to shareholders. b a similar sum payable to winners in a football pool, to members of a cooperative, or to creditors of an insolvent estate. c an… …   Useful english dictionary

  • Slutzkin v Federal Commissioner of Taxation — Infobox Court Case name=Slutzkin v Federal Commissioner of Taxation court=High Court of Australia date decided=25 February 1977 full name= Slutzkin v Federal Commissioner of Taxation citations= [http://www.austlii.edu.au/au/cases/cth/high… …   Wikipedia

  • strip — Variant of a straddle. A strip is two puts and one call on a stock. A strap is two calls and one put on a stock. The puts and calls have the same strike price and expiration date. See: Strap. Bloomberg Financial Dictionary In the United Kingdom,… …   Financial and business terms

  • ДИВИДЕНДНАЯ ЧИСТКА (СТИРКА ОБЛИГАЦИЙ) — (dividend stripping, bond washing) Практика покупки золотообрезных ценных бумаг (gild edged securities) после того дня, когда они начинают продаваться по ценам исключая дивиденд (ex dividend), и до момента продажи их по ценам включая дивиденд… …   Словарь бизнес-терминов

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