The Declaration Date, which is the date the dividend is declared
The Record Date, which is the date all shareholders on record are entitled to the payment
The Payment Date, which is the day shareholders will receive the dividend payment
The Ex-Dividend Date, which is the date the stock no longer trades with the dividend
Dividends are often paid on a quarterly basis and the amount received depends on the amount of shares (of a certain class) you own in that company.
For example, if you own 100 shares and are paid out $.50 for every share, you may get $12.50 every quarter or $50 annually.
In an auction market, the prices of exchange-listed stocks are determined by supply and demand. For example, the higher the demand (and lower the supply), the higher the market price. The lower the demand (and higher the supply), the lower the market price.
Individual client orders to buy a stock are relayed to the exchange, where they are posted and matched with an order to sell. The Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) are examples of auction markets.
In a dealer market when you trade stocks, you are buying from or selling to a dealer that trades with a network of other dealers.
These are negotiated markets where the bid and ask quotations are entered by the dealers acting as 'market makers' in a particular security. The Canadian Dealing Network and OTCQB in the U.S. are dealer markets (which are sometimes referred to as ‘over-the-counter’ markets).
A market order is an order to immediately buy or sell a security at the best bid or ask price available on the market.
Market orders may provide an opportunity to have an order filled but gives you less control over the purchase or sale price.
There are two types of market orders:
A stop loss order is an order that becomes a market order when the stock trades at, or through, the stop price. The stop price can be thought of as a trigger.
A stop buy order is the opposite, which is effective when the price reaches or exceeds the stop “trigger”.
With a limit order, you set the maximum price you are willing to pay for a stock as a buyer or the minimum price you are willing to accept as a seller. The buy or sell transaction will not be filled unless the “limit” price is met.
Limit orders are valid for the following durations; Day, GTC (Good ‘til Cancelled), GTD (Good ‘til date MMDD), Day+Ext (both regular and extended market sessions for that day).
A day order, which is an order valid only for the day it is entered on.
An open order remains valid at a specific price until the order is executed or cancelled. 180 and 90 calendar days for U.S and Canada, respectively.
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