Number of shares

outstanding increases, no new funds are raised. Companies convert accumulated

reserves into equity

Number of shares outstanding drops; theoretical share price unchanged

Number of shares

outstanding increases on pro-rata basis and the company receives new equity

funds from existing shareholders

Number of shares

outstanding remains unchanged while share price drops theoretically

The date that a share no

longer carries the dividend and its price theoretically drops.

The last day on which a buyer of a share is entitled to receive the next dividend