CUM DIVIDEND
When a buyer of a security is entitled to receive a dividend that has been declared, but not paid
When a share is said to be ‘cum dividend’, it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this. At some point shortly before payment of the dividend is actually due, the share will go ‘ex dividend’, meaning that it is being offered for sale without the dividend. If the current owner sells an ‘ex div’ share, he will keep the dividend payment. But again, the price of the share will reflect this – it will have dropped from its ‘cum dividend’ price.
CROSSING
A method adopted by a specialist institutional brokerage firms to handle large buy or sell orders, which would, in the normal course, distort the price movement of shares. In this kind of negotiated transaction, the brokerage firm matches the buyers with the sellers. Once the deal is closed, the prearranged orders are sent to the exchange floor for execution.
CUM RIGHTS
A share is trading cum-rights as long as buyers will be entitled to a forthcoming rights issue. Once the share goes ex-rights, buyers will no longer be entitled to receive the rights.
the market has developed the system of ‘cum rights’ and ‘ex rights’. When a share is cum rights, it means that it is offered for sale with any associated rights. When it is ex rights it is offered for sale without the rights. The share price of theshares will be higher cum rights than it will be ex rights. The phrase cum all means that all supplementary advantages will be included.
CYCLIAL SHARES
cyclical shares are those shares which rise and fall in price with the state of the national economy, of industries such as construction, automobiles, cement, engineering; or those affected by international economy, such as shipping, aviation, and tourism; also shares which are affected by natural phenomena, like fertilizers and tea. Non-cyclical shares would be drugs, insurance, basic foodstuffs and many consumer products.
cyclical and non-cyclical, refer to how highly correlated a company’s share price is to economic fluctuations
The sales of companies with cyclical stocks, depends on whether or not the economy is strong; sales will thrive when people have extra income to spend on luxuries, and they’ll decline when the economy slumps.