Articles on: Investment Glossary

Selling Dividends

A violation of the Conduct Rules. If a registered representative convinces a client to purchase shares of common stock or a mutual fund because of an impending dividend, the representative can be cited for this action. Since both common stock and mutual fund market prices are adjusted downward in the amount of the dividend, there is no monetary benefit to acquiring securities in order to receive a dividend.

Updated on: 24/04/2023

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