How ex-dates (really) work 

In speaking about the Union Bank [UBP 85.4 1.3%] stock rights offering (SRO), I said that anyone looking to participate in the SRO would need to buy or own UBP shares before the Ex-Date (which is correct), but I then went on to say, incorrectly, that it would be necessary to hold those stocks through to the Record Date.

As a few helpful readers pointed out, it is not necessary to be in possession of the UBP shares on the Record Date to participate; you only need to have owned or purchased the shares prior to the ex-date and owned those shares until the start of trading on the ex-date.

If you sold the UBP shares on the ex-date, or after the ex-date, you’re still allowed to participate in the SRO.

No need to hold the UBP shares until the Record Date.

MB BOTTOM-LINE

I’m a long-term investor, and I’ve never tried to time a dividend or SRO play for a quick profit, so my misunderstanding on how the ex-date system works was allowed to remain unchallenged for all of these years.

Thank you to the Barkadans that reached out to graciously share their knowledge with me.

Any day that I can go to bed “less wrong” is a good one in my books.

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