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Why some sell there shares as soon as dividend is declared???

Moderators: बिमलमान, Dilbert.

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Member
Registered: Oct 2013
Posts: 7913
Then those who dont have insider information should stay away from trading and only follow long term investment, Sansaar Ji.

Sab milecha Jigyasu ji. otherwise its not that hard to identify insider trader.
Member
Registered: Feb 2015
Posts: 10
now who is the insider trader? the ceo of the company? or his associates? the board members? but then the dividend plan has to be approved by AGM, isn't it ? #jigyasa
Member
Registered: Jun 2013
Posts: 136
Rising jee, most often the insider trading happens under such condition. They buy when the price too low. till the time the company announces the dividend and general public know the dividend plan, the price of the stock almost saturate. and the insider trader sold out their stock with glamorous profit which they can utilise on other stocks.

Moreover, if one is the smart trader, he presume that the stock price will not rise drastically under normal condition after dividend declaration. And hence they follow the insider trader.
Member
Registered: Oct 2013
Posts: 7913
Jigyasu ji, You have to not just wait for the certificate to sell the right shares, the right shares needed to be listed in the Nepse... there will be notice published on nepse and other share news sights.

It takes months even to apply for right shares after they offer right share, in some case even close to a year. and even sometime, they re offer right shares with different ratio and re book close notice is published. And a few month after you apply for the right share, you get certificate.

We go to their agent merchant bank to fill the form and deposit cash?
Member
Registered: Feb 2015
Posts: 10
dear sir, how does it work with the right shares? do we have to wait until we get the right share certificate to sell or we can sell it before we recieve the right share certificate ? and how long does it take to get the right share certificate after it is declared? and how do we apply for it? your suggestion will be highly appreciated .
Member
Registered: Oct 2013
Posts: 7913
What is the price before dividend has been declared?
=There is minimum and mix dividend investors guess. And the price of the shares remains as per the min guessed dividend till the dividend has been declared.

If dividend is less then the min expected then, price falls, if is average of min and max, price increases and if the dividend is max then price keeps on increasing for a few days..

But, I dont know who, but some body has been teaching amateur investors to sell as soon as dividend is declared. :twisted:

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