By: Oxana Saunders
Beginning September 5, 2017, the US Securities and Exchange Commission (SEC) will require the financial industry to shorten a standard settlement cycle for most securities to two business days from three. The SEC’s amendment is intended to reduce counterparty risk, systematic risk, and improve capital efficiencies.
If you often purchase stocks because of their dividend, then you should pay particularly close attention to these changes.
Starting September 7th, the ex-dividend date will be set one business day prior to the record date (instead of two originally), and therefore you would need to purchase the stock by September 5th.
Below is the link to a ThinkAdvisor.com article that provides more details on how your investments may be affected.
Oxana Saunders is the Vice President of Path Financial, LLC. She may be reached at 941.894.2571 or email@example.com