DOYU announced a $9.76 special dividend. I decided to gamble a little to learn about how special dividends work and the due bill period. However, any attempt to learn about this just gets me more and more confused.
Dividend rules/Due bill period
In addition, Nasdaq will apply its due bill procedures, pursuant to which trades of the Company's ADSs entered into before September 3, 2024 and settled after the record date of August 21, 2024 (the “due bill period”) will have a due bill attached for the special cash dividend payable on August 30, 2024. This means that holders who purchase these securities during the due bill period (even if the trades are to be settled after that due bill period) are entitled to receive the special cash dividend, while sellers who sell the securities during the due bill period (even if the trades are to be settled after the due bill period) are not entitled to the special cash dividend. Investors who enter into trades to purchase ADSs on or after September 3, 2024 will not be entitled to the special cash dividend payable on August 30, 2024.
I bought some DOYU stock today (August 21st) on margin and immediately have some questions.
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Can I sell the stock today (August 21) and still be recorded as a share holder?
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Why is the pay out date in the “due bill period?”
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What happens to my dividend if I sell my shares on the pay out date?
Any help will be appreciated, i've never been this confused in my life.
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