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More FINRA Rules: Buying, Selling, Procedure, etc.

Dashboard > Opening and Servicing Customer Accounts > More FINRA Rules: Buying, Selling, Procedure, etc.

More FINRA Rules: Buying, Selling, Procedure, etc.

FINRA Rule, Selling Dividends

Pushing a client to buy a security in order to receive the next dividend is a big no-no in the securities industry. Just know that it’s never a good idea. 

There’s also a nifty bit of legal language on every prospectus that reads: 


“On the ex-dividend date for a distribution, a fund’s share price is reduced by the amount of the distribution. If you buy shares just before the ex-dividend date, in effect, you ‘buy the dividend.’ You will pay the full price for the...

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