Arms Race Main Issue at Summit
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f ■ .... W - MANCHESTER HERALD, Monday, Nov. U, 1986 BUSINESS M W e HI S II K I < ) ( I S SPOKIS U i M i l l R Crestfleld owner Holiday cataiogs are Treacy sees 3-man I f'Cioudy, miid tonight; charged in incident dandy for a chuckie race on Thanksgiving 11 warm on Wednesday B usinesa Ex-dividend means without dividend ... page 10 ^ ... page 11 ... page 15 I I ... page 2 ex-dividend date and the close of business on the In B r i ^ QUESTION: My wife and I sold 224 shares of stock and the settlement date was Sept. 30. A dividend for dividend record date, five business days elapse. If you buy a stock on the ex-dividend date and the third quarter had been declared but had not yet specify four-day deliveot and settlement, you get the Union conttmplalM buyout been paid at the time we sold the stock. The broker says we are not entitled to that dividend. Investors’ dividend. You can even make it three-, two- or NAUGATUCK — Union workers al Uniroyal I think, because the settlement date was the final day same-day, right up. to the dividend record date. Chemical Co. are considering an employee of the calendar quarter, we should get that third Guide ' However, if you go that route, the amount of the buyout, says a union offlcial.. quarter dividend. What are your comments? dividend will be tacked on to the price you pay for the Uniroyal Chemical employs about 400 people at William A. Doyle • stock. That’s because the market price of a stock is its Naugatuck plant and an estimated 3,000 ANSWER: The quarters in the calendar do not reduced by the amount of the dividend at the time the worldwide. It was put on the market last week by determine who is entitled to receive dividends. stock goes ex-dividend. its parent company. Middlebury, Conn.-based Ex-dividend dates do. Many companies pay dividends Uniroyal Inc. QUESTION: I think I have come up with an idea for Mnnlh on their stocks four times a year. Those are called -A ia tii____ __________ L. * TTuesday,iia o H aw Kln\#Nov. 19, 1985 — Singie copy: 25< "It's a pretty large undertaking and I don't ANSWER: Because you bought that stock after its making steady profits in the stock market. I ’ll buy a Manchester, Conn. — A City ofUJanrkatrr Viilage Charni "quarterly dividends,” but aren’t necessarily paid to know if it will materialize because of the investors who owned shares at the end of calendar ex-dividend date. A stock goes ex-dividend at the stock a day or two before it goes ex-dividend and sell it magnitude of the company," Joseph Rzeszutek, quarters. opening of stock market trading the fourth business immediately after its ex-dividend date. By repeating president of Local 218 of the United Rubber In simple words, ex-dividend means without day before the dividend record date. that process, over and over again, with many Workers, said Thursday. "But we hope to find a dividend. When you seli a stock before Its ex-dividend The dividend was paid to stockholders of record at different stocks, won’t I pocket the dividends and way to do it.” date, you do not receive the next dividend. The person the close of business Friday, Oct. 18. So. the stock went "beat the market?" Buckland About 30 union members voted unanimously who bought the shares you sold gets that dividend. ex-dividend on Monday, Oct. 14. •Tuesday to try the buyout. Rzeszutek said he The fact that your sale had a Sept. 30 settlement Anyone who bought that stock or after Oct. 14 was ANSWER: It’s far more likely the market will beat doesn't know the price of the chemical company, you. You're ignoring the fact that the amount of the Arms race date means that the trade date — theday on which you not entitled to that dividend. To get that dividend, you but said it is "in the hundreds of millions of sold the stock — was Sept. 23. The settlement date is would have had to buy the stock on or before Friday, dividend is automatically deducted from a stock’s mall plan doliars.” five business days after the trade date. Saturdays, Oct. 11. market price on the ex-dividend date. Sundays and holidays don't count. If the ex-dividend Unless each stock you buy goes up in price, for some date was Sept. 24 or some later date, you were not QUESTION: Isn't it ever possible to buy a stock on reason unrelated to the dividend, the price you get approved Hormel surviving strike entitled to that dividend. But. if that stock went or after the ex-dividend date and still get the when you sell will be lower than the price at which you ex-dividend on or before Sept. 23, you get that dividend? bought. main issue AUSTIN, Minn. - Geo. A. Hormel & Co. dividend. You’ll have to pay income tax on the dividends you apparently achieved record financial perfor ANSWER: What you have in mind can be done. collect. And the commissions you pay on those mance during fiscal 1985, despite a three-month repeated purchases and sales will clobber you. By John F. Kirch QUESTION: After reading in the paper that a The normal ex-dividend procedure applies to Herald Reporter strike at its flagship plant, a newspaper survey of company had declared a iarge dividend, "payable to "regular way transactions" — the method through customers and analysts said Sunday. which the vast maJority of stock trades are handled stockholders of record Oct. 18," I bought 100 shares on The Planning and Zoning Com Representatives of Hormel and Local P-9 of the ’ and which allows for the standard five-day Doyle welcomes written questions, but he can Oct. 16. Then, I asked the broker when I will get the mission Monday approved final at summit provide answers only through the column. United Food and Commercial Workers met dividend check. He said. "You won’t.” Why? settlement B e tw e e n the opening of business on the Friday and scheduled another meeting for site plans for tbe 750,000-square- Thursday. Friday’s session was only the second foot Buckland HUlls Mall, which is time the two sides had met sincethe 1,500Workers planned on land north of Interstate went on strike Aug. 17 for higher wages. 84 between Buckland and Slater Everyone affected streets. Union sources have reported spot shortages of Reagan, Gorbachev Hormel products, but a survey of food chain' Town Planning Director Mark custoipers and analysts by the Minneapolis Star Pellegrini said this morning that and Tribune suggests Hormel is meeting demand by currency rates the developers — Manchester 1-84 hit it off, aides say with little difficulty. Associates and the Chicago-based "W e’ve seen no problems of any importance in guesses on the currency markets Homart Development Co., a subsi either product shortages or shipping delays.” By Carl Hartman K * By Helen Thomas curbing the arms race. can cost millions — and maybe the diary of Sears — must now apply said Rita Simmer, manager of public relations The Associated Press United Press international "That is one of the subjects we’ll Job of the currency manager. ■m for approval of the subdivision for Super Valu Stores Inc. Similar reports came discuss,” Reagan said. Pressure is building for a more proposals contained in tly residen from other food chains. WASHINGTON - An American tial sections of the plan. GENEVA — President Reagan U.S. officials were buoyant couple who planned a dream trip to stable system. and Soviet leader Mikhail Gorba about the first meeting at the Villa "M y suspicion is that they have many months In addition to the shopping mall, Japan a few months back with Sir Robert Muldoon, former chev opened the first superpower Fleur d’Eau, a private chateau on to go before seeing problems,” George Dahiman, the plan calls for 818 housing units, carefully budgeted savings may prime minister of New Zealand, summit in six years with smiles Lake Geneva being used for the a securities analyst with the Minneapolis including 34 single-family homes, get an unpleasant surprise when says exchange rates remind him of and a warm handshake today and two U.S.-sponsored talks today. brokerage firm Piper. Jaffray & Hopwood, said. SO two-family homes and 412 the credit card bill arrives. a tennis ball at a Wimbledon final chatted alone for 64 minutes Two more sessions were scheduM Instead of the $3,000 they ex and^ people have begun to talk multi-family units. The housing for Wednesday at the Soviet would be built around the mall, seeking to isolate the conflicts that pected to spend, they might find a about the "yo-yo dollar.” UPI photo have turned their nations into mission. with a buffer of trees between Dollar mixed In Europe bill for something like$3,600. And it The price of currencies is set by adversaries. The two men smiled pleasantly wouldn't be due to a sushi splurge sellers and buyers on world them, tbe plans show. It was the first face-to-face meeting arrivai at Reagan’s viiia in Geneva for and chatted briefly before entering The two summit sessions today, LONDON — The .dollar opened mixed today in — just a change in the yen-dollar markets, like the price of copper or . the villa. The mall and bousing would be between the ieaders of the two most the start of the two-day summit taiks.