How Do You Spell CUM DIVIDEND?

Pronunciation: [kˈʌm dˈɪvɪdənd] (IPA)

"Cum dividend" is a commonly used term in the finance industry that describes the status of a stock when a dividend has been declared, but not yet paid. The word "cum" is pronounced /kʌm/ and comes from the Latin word meaning "with". The phonetic transcription of "cum dividend" is /kʌm ˈdɪvɪdɛnd/. It is important for investors to understand the spelling and meaning of this term, as it can affect decisions regarding the buying and selling of certain stocks.

CUM DIVIDEND Meaning and Definition

1. Cum dividend is a term used in finance, particularly in the context of stock markets and investments, to signify that a particular security or stock is being traded along with its accrued dividend. The phrase "cum dividend" is derived from Latin, where "cum" means "with" and "dividend" refers to a distribution of a portion of a company's profits to its shareholders.

   When a stock or security is labeled as "cum dividend," it indicates that anyone purchasing the asset will be entitled to receive the upcoming dividend payment. In other words, the buyer will receive the dividend that has been declared by the company, even if it has not yet been disbursed. The cum dividend status is typically assigned to a stock or security for a specific period leading up to the dividend's payment date, generally a few trading days before the "ex-dividend" date, which is the cutoff point for determining ownership rights to a dividend.

   Investors who purchase stocks cum dividend incur additional costs in the form of the dividend expense, as the market price of the security typically reflects the value of the upcoming payment. Therefore, the cum dividend price will generally be higher than the ex-dividend price, where the dividend is not included. This differentiation allows shareholders who sell a stock ex dividend to retain their right to the dividend, while those who purchase it cum dividend secure the entitlement to the payout.

Common Misspellings for CUM DIVIDEND

• xum dividend
• vum dividend
• fum dividend
• dum dividend
• cym dividend
• chm dividend
• cjm dividend
• cim dividend
• c8m dividend
• c7m dividend
• cun dividend
• cuk dividend
• cuj dividend
• cum sividend
• cum xividend
• cum cividend
• cum fividend
• cum rividend
• cum eividend
• cum duvidend

Etymology of CUM DIVIDEND

The word "cum" originates from the Latin word "cum", which means "with" or "together". In finance, "cum" is used to indicate that a certain benefit or entitlement is included or accompanies something else.

The term "dividend" derives from the Latin word "dividendum", which means "a thing to be divided". In finance, a dividend refers to a payment made by a corporation to its shareholders out of its profits or reserves.

Therefore, the term "cum dividend" combines the Latin word "cum" (meaning "with" or "together") and the term "dividend" (referring to a payment to shareholders). In finance, "cum dividend" is used to indicate that a stock or security is sold or traded with the right to receive the next dividend payment.

Plural form of CUM DIVIDEND is CUM DIVIDENDS