what is proprietorship business? Proprietorship or sole proprietorship which is also known as sole trader, is a type of business entity owned and operated by one person. It is also like a individual giving business name for himself to perform business activities professionally.
Consider an example. Assume company Alpha has declared a dividend of $1 payable on May 1, 2015 to shareholders of record as of April 10, 2015. The record date is therefore April 10, 2015 and the ex-dividend date is two business days before the record date, or April 8, 2015.
After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend. The ex-dividend date is determined by the ASX by working forward from record date. The ex-dividend date is 4 trading days prior to the record date. Therefore the investor MUST have purchased the shares at least five trading days before the record date or by the close of trading on the day BEFORE the ex-dividend date. The moment the trade is executed the investor becomes the legal owner of the share.