Definition of cum dividendCum dividend A share is described as ex-dividend when a potential purchaser will no longer be entitled to receive the company's current dividend, the right to which remains with the vendor. Cum-dividend has exactly the opposite sense, meaning that the dividend or other benefits belong to the buyer rather than the seller. The price of a share that has gone ex-dividend will usually fall by the amount of the dividend, while one that is cum-dividend will usually rise by this amount.
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