Definition
Cum-Date
Cum-date refers to the period when a stock still trades 'with' the right to an upcoming dividend or corporate benefit.
A stock is cum-dividend (or cum-bonus, cum-rights) up to the day before the ex-date. If you buy during this cum period, you are entitled to the announced benefit; the price reflects this and is slightly higher.
Once the stock goes ex, the benefit no longer transfers to new buyers, and the price typically adjusts down. Understanding cum vs ex timing matters for dividend-capture strategies and for knowing whether a price drop is real or just a corporate-action adjustment.
Related terms
- Ex-DateThe ex-date is the cut-off day from which a stock trades without the right to an upcoming corporate action like a dividend, bonus, or split.
- Record DateThe record date is the date on which a company checks its books to decide who is eligible for a dividend, bonus, or other corporate action.
- DividendA dividend is a portion of a company's profit distributed to shareholders, usually in cash and on a per-share basis.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.