Melvins Paltalk Conversation...Reposted for you easyanswers... with my opinion kept out.
Facts only.

Melvin on Paltalk @ 12:00ish Saturday.... I'm taking notes while listening...

1st. Urban DID end up in the hospital - diagnosed with very mild stroke... MRI and catscan done, everything is positive and ok. Urban sends his love, and he is pretty much back to normal.

Not to worry... When you become rich she'll just take the credit card and call a limo serice... until then you are held in captivity at the mall lol...

CORPORATE RESPONSIBILITIES OF PUBLIC COMPANIES IN 2003 by D. Roger Glenn

Including information on THE SARBANES-OXLEY ACT OF 2002
http://www.rrdfin.com/download/services/pub_pdf_html_files/Corporate_Responsibilities/38331.htm#tx331_2

bluediamonds
>>>> A rousing recap of recent events... <<<<
« Thread started on: Today at 8:33pm »

--------------------------------------------------------------------------------
A rousing recap of recent events...

"What's this all mean? It means that August may be one of the most exciting months of our entire lives."

By: bill19336
31 Jul 2004, 07:48 PM EDT
Msg. 12140 of 12142
Jump to msg. #
A recap of recent events...

*Brazilian gold embargo ends
*Yellow River ships gold
*Diagem ships diamonds
*Shore Gold strikes a quality diamond vein (finds a 19.7 carat diamond)
*UCAD pays CMKX 3 million $US
*Numerous partnership deals are announced (see flow chart)
*Two dividends are given to CMKX holders (UCAD, CIM)
*A meeting of all the partners in Saskatchewan is planned
*The general partner in a respected Wall Street firm goes sight seeing to Saskatchewan
*The month of July ends as MMs balance their books (price was suppressed?)
*JEFF the MM finally leaves the ask for more than an minute 7/30/04
*NITE the MM stays on the bid for longer than a minute 7/30/04
*SBSH the MM (Citicorp) returns to action and befuddles the other MMs with their pre market moves on Friday 7/30/04
*A new MM joins the party

SPECULATION, RUMOR AND INNUENDO:

*Drilling is ready to begin on a third site (rumor)
*New drilling permits will be acquired by Ron C. next week (rumor)
*Ron Casavant and our geologist continue to perform ground surveys on areas targeted by the aerial surveys
of the last few months.(rumor)
*A cash dividend has been rumored since a Jan 2003 PR. (rumor)
*An outside contractor is drilling at Green Lake (rumor)
*We will use JUINA's equipment to accelerate our drilling program (rumor)
*We will use UCAD's mining contacts to manage and engineer our finds.(rumor)
*We will use the packaging and sale of our claims to fund the expansion of CMKX's business model (i.e., exploration, production, distribution and marketing). (rumor)
*We will use our Racing contacts to market & distribute our branded diamonds, clothing and misc. items (rumor)
*We will use Urban's high public profile to insure that the world knows of Shorty's crooked dealings should they try to avoid paying us. (rumor)
*Melvin quits Pal Talk (rumor)
*Pal Talk is being monitored by the SEC (rumor)

And don't forget what the partners of our (Nevada Minerals, Nevada Magnetics, UCAD, JUINA, etc.) are doing in Africa, South America, Canada, the United States and who knows where else.

What's this all mean? It means that August may be one of the most exciting months of our entire lives.

Good Luck and feel free to add anything I've missed

*NOTES:

1. Look for updated charts because all of the following information will be outdated by the end of
next week (Friday - 8/6/04). IMHO

2. This is a flow chart of our current partnerships. http://img.photobucket.com/albums/v400/dragonheartt/flowchart.gif

3. This is a map of CMKX's holdings prior to last week.
KEY: CMKX property has a blue outline, Shore Gold (white outline) and DeBeers (red outline). http://titangold. com/CMKXMap2.jpg (close space)

4. Don't let the inaccuracies in the map fool you, it is rumored we are only a stones throw away from Shore Gold's latest strike
(they have a pit 15' deep x 1,000' wide). That is where Shore Gold found a 19.7 carat diamond last week.

5. All the information presented here is publicly available to anyone doing detailed DD.

6. The speculation is my personal opinion and reflects my assessment of the facts as I see them.

quote:

---

Originally posted by Brad:
Awfully quiet out here today. That's good. Maybe everyone took this oppurtunity to get reacquanted with their families and loved ones.

---

Yeah, I been literally glued to the computer this week, need a break.
FYI, Monday is civic holiday in Canada - I think stock market is closed (the TSX) and I sure hope so otherwise it wouldn't be a holiday.

Global Prayer Chain For Vicky
Dear Member,

We all know about her health issues. As Believers, we know prayer
works. My challenge to you, is put your faith to work.

James wrote "Faith without works, is dead"

Let's get busy doing what will work. Make it a point once a day to go
to the Prayer Board here, click on the topic, Global Prayer Chain, and
post a prayer for her.

It doesn't have to be long or fancy. Just simple and sincere. Never
prayed in public? Here's a good way to get started.

Sometimes I watch the Raging Bull board just for kicks, where there's a
post a minute, because it's all about the money.

Let's show the world that while we aren't opposed to making a few $'s,
we really do have a different agenda here at Christian Traders.

The link to the topic is http:// c h r i s t i a n t r a d e r . p r o b o a r d s28.com/index.cgi?board=prayer&action=display&num=1091239780
Feel free to forward this to every Prayer Warrior you know! Let's storm
Heaven's Gates until Vicky gets the Victory!

Blessings
CT

ps / the music is nice also

Regards,

The Team http:// c h r i s t i a n t r a d e r . p roboards28.com/index.cgi

(remove spaces if you want to view the thread - I hope I don't get in trouble for this)

How are things by you?

Terrible news about U.C. however from what the rumors are saying he isn't in horrible shape so that is at least good news. This whole thing must be extremely trying on him. Makes you wonder what he knows/what is up there that has his nerves on end...

Lets hope for the best

Anything else happening? Any new leads,lol?

I got a fax about an African Gold company, RIRI the fax said it trades at .25, when I looked Thursday it was at like .19-.2

Maybe worth looking at just to look at.

RIRI

=============================================

Pharm!!! Where are you?!?lol...

Hey guys if anyone has HBO check out this show: The Ollie G Show... This show is so effin funny!!! lololol... This guy has interviewd alot of people, politicians, professors, doctors, but he is nuts and his whole 'setup' is just so witty and amusing...

He does this impersonation of a Policitican from Khazakstan doing a film documentary in America. He fools a real Mississippi Politician into doing the interview and going out in public with him. He puts on a fake accent and get up, its so funny. He basicallly gets this Politician to say on camera that the Jews are going to Hell... I knwo it's f'ed up but it is none the less funny to see how he can just 'trap' these people... He manages to get people to stand for ten minutes in silence in honor of a massacre in Khazakstan, in a US Court everyone is standing..lol...

He tells this woman :"I like you, I like to make romance inside of you. But no force, only if you say it is okay.." (imagine it in a accent from Khazakstan/Russia)

lol...

Hahahahh....

quote:

---

Originally posted by bill1352:
any retired shares will not be a part of any dividend as they would not be part of the o/s. the o/s could be as high as 249,999,999,999 if they retired enough of the o/s to give controling interest. but this number would need to be adjusted by the shares insiders hold.

---

So I take it UC was holding 40 billion shares personally and he gave them up in the UCAD dividend deal and that's why he does not get any dividend shares but he still has the majority vote since he is CEO and company holds 51%? Anywho, this explains why he is not getting the dividend IMO.

I'm working in the Fort McMurray Oilsands industry. There are mainly leases with rich oilsands in the area. Syncrude, Suncor, Petro Canada, Shell, Canadian Natural Resources, Deer Creek Energy, OptiNexen, etc. I'm working for Canadian Natural Resources as a consultant. The lease has just started construction for the mine site. Deer Creek Enegry, just went public, currently a SAGD operation with plans to have a open mine. You can all read about it on their web pages.

Deer Creek Energy (DCE-TSX) is at 9.28 (or close to), and after a mine starts up, if you look at Suncor, it trades for $40/share and thats with a higher o/s than DCE has. That's a good investment opertunity....

Now back to CMKX....

GO CMKX!!

1M and holding

quote:

---

Originally posted by lbulbu:
Just sitting here reading the board. In mail today I got letter from company wanting
me to subscribe to there invesment magazine.
If I subscribe they will send me a special investment report. In the report will tell of a extraordinary company no bodys heard off. It says this company just unlocked the single largest deposit of oil anywhere on the face of the earth.It says there is more oil in this country than in Kuait iran and even Iraq. I found this interesting cause this country is Canada and this company is in Canadas Alberta Province. IMO I found
this very interesting and thought to share
with you all.

---

------------------
kjs69

repost: THE MASTER PLAN by zeninvestor

But equally as important is watching a true (CMKX) empire take shape. Whether you’re in for 2 months, 6 months, or a year, I think this is going to be the most breathtaking, exhilarating experience you could ever hope to be a part of in the financial markets.

Posted by: zeninvestor32
In reply to: None Date:7/27/2004 8:18:04 AM
Post #of 67142

THE MASTER PLAN

There’s a lot to sort out here. And just when you think you’ve got a handle on things, one more variable pops into your head that sends it all spinning. Believe me, I won’t claim to understand everything that is happening. I’m going to take my best stab at this but please understand that we are trying to guess Roger and Urban’s master plan and that is obviously under wraps.

First things first. Where I was BEFORE this release. My belief was that Roger and Urban were going to divvy up CMKX’s rights and claims and transfer them all to other vehicles. Cleaner vehicles free of shorting. Basically I believed the plan was to effectively “gut” CMKX and transfer ownership of everything into many, many, many different vehicles. First I believed that Urban would distribute every claim piece by piece – gold, zinc, uranium, copper, oil/gas, potash, etc. Whether it was CIM or UCAD or another entity (possibly a partnership with DeBeers?), I believed that in the end one other company would “buy out” their only remaining rights – diamonds. Effectively this would have distributed all rights to us the shareholders across a broad base of dividends and effectively stairstepped the value of the company, and screwed the short position blow by blow until their complete capitulation with the diamond rights. And then the vehicle which bought the diamond rights would be the one to go public so that Urban continues to be king of diamonds. Anyway enough of that. Things change.

What have we learned from this PR?

Urban is indeed giving. He is giving up 40 billion shares and is refusing to take a dividend on them while refusing payment for them except when the mining is profitable. I think we will continue to see his “giving” nature.

Roger is not only on board but actively partaking in the company’s plan. I must stress that a partner of this level becoming intimately involved enough to take trips of this nature means Roger is not simply filing paperwork. No, he is ACTIVELY engaged in this process. This is bigger than many can imagine.

There was something of significant value on that aerial survey in those 500,000 acres. Otherwise, Urban wouldn’t be wasting his or our time on them. Remember that this is THE MOST ADVANCED, DETAILED SURVEY DONE ON THIS PROPERTY.

This release tells me NOTHING about the trading float. It tells me there are restricted shares. It tells me Urban owned at least 40 billion shares. It tells me there will be 35 billion shares paid over to Nevada Minerals (who is owned by cmkx and UCAD now (who by the way is owned 49% by CMKX) but more on this later). Still I’m left not knowing the trading float. And I think that’s for a reason (more on that too in a bit).

This release tells me that Urban and Roger are very acquisitive.

This release tells me there are so many pieces in place and remaining to be put in place that we need to sit back and watch it all unfold.

THE EMPIRE

For starters, I believe we are on the edge of an empire in mining. There are some that dismiss our mining claims as puffery or horse manure. I believe nothing could be further from the truth. I believe the aerial survey is not simply a “rough idea” of this area’s deposits. I believe it displayed loud and clear the most impressive array of mining rights and claims probably ever seen before. I think well find out more detail about these “anomalies” in due time, possibly with some drilling results contained in a secured warehouse : ) . But I believe Roger didn’t step into the ring for real until that survey was completed and it confirmed everything that was suspected about this property – namely that it may be one of, if not THE, wealthiest properties ever witnessed.

So how do you just one day build an empire. Do you wave a flag and say “Here we are!! Come and get us???” Not really. It’s just not that simple. Particularly when DeBeers is probably flanking you with a potential assault and the hedge funds are slapping your stock price around like a ragdoll. Enter Roger Glenn. Now a master plan for the empire must be assembled. The shorts must be eliminated. An appropriate vehicle or vehicles must be established to handle an empire’s worth of operations. And quite frankly, a pink sheeted CMKX shorted into the ground ain’t gonna cut it!!

IMO what is now becoming more obvious with each release is that a collection of juniors are conglomerating to form a unified empire of rights and claims. UCAD is giving us half ownership of their company. Now we’re giving UCAD a piece of CMKX. We’re all acquiring Nevada Minerals. UCAD owns a majority interest in Juina. I’m guessing United Carina is not far off. I’m guessing Consolidated Pine Channel is not far off. Shane Resources too. Not so sure about Shore Gold but possible. When it’s all said and done, UCAD is looking like a very tasty vehicle to hold an awfully large percentage of our claims … if not perhaps all of them. And what better name for a North American major to be formed than UCAD … U.S. Canadian Minerals, Inc. So, my thoughts today are that this release is yet another step in the direction of bringing all intended claims under the fold of a separate entity. Nevada Minerals held a biggie. 500k acres. Yeah, that’s a monster, and I’m guessing based on the aerial survey, it’s a bigger monster than any of us expect. I think this release was CRITICAL in acquiring a piece of property of this potential value at this stage. It is all part of the plan to bring these companies and properties together as one.

What else is in store? My thoughts lead me to the PR on December 29, 2003 talking about 2 public companies looking to buyout certain rights and claims from CMKX. Supposedly those buyouts were to be done by the end of January but mysteriously they were put on hold. I believe it was around this time that the REAL plan was actually begun and the talks for any buyouts were scrapped until far greater pieces were in place. And now they are. What are these other claims to be bought out? My best guesses lead me to a buyout of our potash, uranium and oil/gas rights. Someone mentioned POT (NYSE) the other day. Maybe. Our area is also widely known as highly rich in uranium. Others have hinted at map claims that seem to indicate we hold uranium rights. I don’t doubt that uranium would be a wonderful right to sell off for a huge cash infusion given that it is probably so highly regulated I doubt anyone in this new company would care to deal with THAT particular element. And as for oil/gas, I’m guessing that would be another great right to sell off as it doesn’t seem to fit what is developing to be a “precious metals” profile. I’m sure there would be suitors aplenty for all of these rights.

Ok, so back to the PR. Yeah, what about that PR? I offer all of the above as reason enough to say that if you overanalyze this PR you will make yourself ill. There is clearly something MASSIVE going on here. You don’t do the corporate shuffle at this level unless you are bracing for something significant. Roger Glenn does not sit around late at night devising clever corporate ways to burn through Urban’s money just so that he can get his legal fees. No, this is part of a master plan. And if anyone here (including myself) is arrogant enough to think they can get it correct, they are idiots. All we can do is guess and try to keep our eye on the forest and not the trees. Still, a few trees are forming.

INSIGHT #1: IMO we don’t know the OS yet because it wouldn’t do us any good. Anyone noticed how shares are flying back and forth fast and furious between companies? IMO until Urban has stopped giving, THE OS WILL NOT BE KNOWN. It does no good to release it today if it is going to restructure itself every other day. Just yesterday if they put out an OS release it would have read “The OS is X, with Urban owning Y.” Already that has changed. Pay attention to all the swapping going on. It’s incestuous! And until it all settles out and the landscape is clearer, I think we’re going to be waiting for that final OS. My guess is that by the CIM dividend, a LOT more things will have happened. It’s possible we may own many more companies by then. We may have cash dividends. We may receive more shares. We may give more shares. Who knows. Sit back and enjoy. It’s not very often you get to have front row seats to an empire being built IMO.

INSIGHT #2: We own 60% of Nevada Minerals now. UCAD owns 40%. We own 49%ish of UCAD after the dividend. Nevada Minerals owned 5 million shares of UCAD (29% of UCAD). UCAD owns 40 billion shares of us. Are you lost? I sure am. I’d need a degree in Calculus I think to figure out whether we even PAID for this 500k acre property. What I do know is that this property is dirt cheap when you factor in the fact that our right hand is feeding our left hand. What all of this is saying though is that we are becoming a more and more integrated unit with each release. And this is key.

INSIGHT #3: Urban is sending a very loud message to all shareholders. The same man that was retiring billions and billions of shares last year to help us is again helping us. He is paying for this with his shares, giving up his dividends, and refusing to take payment until the property turns a profit. All this horse pucky about Urban dumping on shareholders and diluting shareholders in the market is pure nonsense IMO. First off, he ain’t gonna be doing that in front of Roger or Roger would never have agreed to take him on as a client. And second, he is going out of his way to demonstrate time and again that he WANTS TO HELP US. I’m really believing that all the fanfare from the races about his giving nature is just simply true.

Ok, this is exhausting. The end game IMO is a simultaneous division and amalgamation of companies and claims. I believe the end game is to have at least one major holding company under which most claims will be held. I believe right now that vehicle is most likely UCAD. It is tightly held. Probably a near zero float. And if it continues to rise and stay above the $5 mark, I may start suspecting a nasdaq or nyse listing in the future (6-12 months from now? But maybe with a filing for listing earlier?). I believe though that Roger still has much more information to reveal to us before we see UCAD in its final form. CIM puzzles me a little. I’m not sure if they are simply planning on bringing it public as a zinc company or what. I don’t really have an answer as to that one. I do think we’ll sell some claims. That money may go into the company’s coffers to finance drilling and further acquisitions or it may turn into a cash dividend. I don’t know. Will De Beers join in on this dance? I don’t know. I do find it odd that they filed their corporate articles on May 28 and about 5 weeks later the listing was noted as DQ or in default. Peculiarly, another company using DeBeers’ very same transfer agent popped up within 48 hours of the DQ designation on July 6 under the name Crystalline Minerals (crystalline minerals being diamonds). Is this the entity with which DeBeers plans on doing something with CMKX? Who knows. Just guesswork.

In fact, it’s all guesswork. And that’s probably my final observation. I think there is just no way to know where or how the next move will be made. But I take great comfort in believing that law firms like EdwardsAngell don’t go to these lengths to a) hide a scam, b) cover up wrongdoings, c) get CMKX to the otcbb or d) to do anything for mere POTENTIAL claims. No I believe we are on the cusp of an empire. The pieces are being laid down methodically IMO. One by one, I believe questions will be answered. I also believe a LOT of this will NOT be understood. And that’s fine. Corporate law can be a huge, honking mess particularly when you are attempting to structure what may become a MASSIVE entity. Not everyone is a corporate attorney. And not everyone will understand every move. But again, see the forest instead of the trees. They are clearly pulling together a lot of resources from a lot of companies with a clear plan in mind.

My confidence level is back up over 90% (deductions still for Urban appearing at races – LOL). Jeez, anyone claiming scam at this point is barking in the wind. You just don’t assemble pieces like this unless something real is happening. Scams are hidden and secretive and usually accompanied by a ton of really fluffy press releases. We are seeing NONE of that any more. Straight forward. Dense. Meaty press releases. So dense in fact, that it’s nearly impossible to figure out the weight of each sentence.

Sorry this is so long. The above is all big, huge, flapping, gaping speculation. But I hope it gives some food for thought. They are my best effort at giving an overview of where I see things right now. Each successive PR has caught me offguard so it’s all subject to change once again. I am honestly more excited than I have ever been before. I think we’ll see many more pieces very soon. And I believe I will be in on the ground floor of an empire being built. This next sentence may hurt but it shouldn’t. I believe this may take a year. Don’t get scared. I just think that I’ll have the opportunity to exit in the near future (within a few months) at a massive profit. In fact, enough profit to possibly take care of me for the rest of my life. But I believe if I hang around a bit longer to see this empire reach its full potential, I believe I’ll be able to take care of my kids and their grandkids for the rest of their lives in addition to just myself. It may take a year, but that would be fine by me. That’s just my opinion.

As for the naked shorts, they simply can never survive this assault IMO. Ever. Whenever it is that they fold, good riddance. I think they are simply a bonus that has allowed us to enter at these absurd prices. Man did they ever get snookered. And pay for it royally they will IMO. But I’ve actually stopped caring about them much now. After today’s PR and when I really stopped to think about it, there’s much more going on here that is far more exciting than whenever it is that JEFF is going to get sledgehammered. Believe me I’ll be thrilled to see him go and it will be a great victory against an evil force in the market. But equally as important is watching a true empire take shape. Whether you’re in for 2 months, 6 months, or a year, I think this is going to be the most breathtaking, exhilarating experience you could ever hope to be a part of in the financial markets. I am stocking up on popcorn. Bigtime.

Z

As always, these are my personal opinions.

--------------------------------------------------------------------------------
on Today at 4:13pm, Pheenix11 wrote:I know I'm paranoid, but humor me. This new terror alert has me wondering.

What effect if any would this have on stock holdings if terrorists attacked & destroyed the DTC (Depository Trust Company)?

The DTC is basically a very large data center, part of their job is to "dematerialize" shares, that is make them nothing more than computer entries. That being said, all large data centers, as well as most others, have what is called a disaster recovery strategy, part of which includes a hot backup capability at another data center. In fact, all data is stored at two locations; the primary and the backup site. This is called data mirroring.

Certain companies, such as IBM and Sungard, specialize in the delivery of these types services, including both the data mirroring and hot site. These sites are massive; hundreds of thousands of square feet of raised floor and just as much regular offce space. Installed in these facilities is the necessary computers and networks to rapidly take over operations, usually in a matter of hours.

In the event of a disaster that impairs the ability of the center to perform its' function, operations can be swiftly relocated to the hot site. Even the networks communcations are swiftly swung over to the hot site. Most companies perform a full practice of disaster scenarios at least once a year, some do it twice and some even more. Many of these scenarios include rapid staff replacement.

When the first WTC bombing took place in the early 90's, about a dozen banks and trading companies actually relocated to these massive hot sites in a matter of hours. The Comptroller of the currency and the Fed demand that all financial institutions have hot backup.

So I would doubt that a hit on the DTC would have much of an impact on data operations. Perhaps a few hours of interruption, but probably no loss of data.

I hope this answers your questions and your concerns

Hey guys. Ahhhhh its been a pretty bad weekend for me Listen, if you guys could, just say a quick 1 second prayer for me... I could use any/all spiritual support I can use right now (Family problems that are not directly affecting me)

If I could subtract all this, I would be in much better shape.

Better news is that I saved 10% on my car insurance by switching to Gieco...

I also will be buying another round CMKX shares on monday or tuesday!!! LOLOL!!

I wonder how todays Terrorism news will play out?!?

-John-

Shout out to Pharm, TeenTrader, Stoned Pigeon , Noah, Booty quest, Debi and of course the lovely Trading Whiz heheh...And to all others I have forgotten due to this bad head ache

The best one.

"Love covers a multitude of sins"

Second

quote:

---

Originally posted by JBCak47:

I wonder how todays Terrorism news will play out?

---

I think CMKXers should be fine,I've seen many people tring to terrorize us out of our shares since I've been in this thing.Go CMKX.

quote:

---

Originally posted by STAR GAZER:
Tradingwizard, I bought over a half million shares of USCI at .0015. For months now, I have not been able to find out anything that is going on. I will look again. If it turns out to be a viable company, we could both be rich.

---

Declaration, Ex-dividend, and Record Date Defined
Investopedia Staff

Printer friendly version

Have the workings of dividends and dividend distributions mystified you too? Chances are it's not the concept of dividends that confuses you; the ex-dividend date and date of record are the tricky factors. In this article we'll sort through the dividend payment process and explain on what date the buyer of the stock gets to keep the dividend.

Before we explain how it all works, let's go over some of the basics to ensure we have the proper foundation to understand the more complex issues. Some investment terms are thrown around more often than frisbees on a hot summer day, so it's important that we define exactly what we're talking about.
Different Types of Dividends
The decision to distribute a dividend is made by a company's board of directors. There is nothing requiring a company to pay a dividend, even if the company has paid dividends in the past. However, many investors view a steady dividend history as an important indicator of a good investment, so most companies are reluctant to reduce or stop their dividend payments. For more information on buying dividend paying stocks, see the articles "Back in Vogue: Dividend Strategies" and "Don't Forget about Dividends."

Dividends can be paid in various different forms, but there are two major categories: cash and stock. The most popular are cash dividends. This is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. For example, suppose you own 100 shares of Cory's Brewing Company (ticker: CBC). Cory has made record sales this year thanks to an unusually high demand for his unique peach flavored beer. The company therefore decides to share some of this good fortune with the stockholders and declares a dividend of $0.10 per share. This means that you will receive a check from Cory's Brewing Company for $10.00 ($0.10*100). In practice, companies that pay dividends usually do so on a regular basis of four times a year. A one-time dividend such as the one we just described is referred to as an extra dividend.

The stock dividend, the second most common dividend paying method, pays additional shares rather than cash. Suppose that Cory's Brewing Company wishes to issue a dividend but doesn't have the necessary cash available to pay everyone. He does, however, have enough treasury stock to meet the requirements of the dividend payout. So instead of paying cash, Cory decides to issue a dividend of 0.05 new shares of CBC for every existing one. This means that you will receive five shares of CBC for every 100 shares that you own. If any fractional shares are left over, the dividend is paid as cash (because stocks can't trade fractionally).

--------------------------------------------------------------------------------

FREE Trading Education Kits for Investors
Learn to trade the markets like a Pro! Explore our wide range of FREE offers including CD-ROMs, Books, Home Study Courses, Software, and even Trade Recommendations. Click Here To see the FREE Offers.

--------------------------------------------------------------------------------

Another type of dividend is the property dividend, but it is used rarely. This type of allocation is a physical transfer of a tangible asset from the company to the investors. For instance, if Cory's Brewing Company was still insistent on paying out dividends but didn't have enough treasury stock or enough money to pay out all investors, the company could look for something physical (property) to distribute. In this case, Cory might decide that his unique peach beer would be the best substitute, so he could distribute a couple of six-packs to all the shareholders.

The Important Dates of a Dividend
There are four major dates in the process of a company paying dividends:

Declaration date – This is the date on which the board of directors announces to shareholders and the market as a whole that the company will pay a dividend.

Ex-date or Ex-dividend date – On (or after) this date the security trades without its dividend. If you buy a dividend paying stock one day before the ex-dividend you will still get the dividend, but if you buy on the ex-dividend date, you won't get the dividend. Conversely, if you want to sell a stock and still receive a dividend that has been declared you need to sell on (or after) the ex-dividend day. The ex-date is the second business day before the date of record.

Date of record – This is the date on which the company looks at its records to see who the shareholders of the company are. An investor must be listed as a "holder of record" to ensure the right of a dividend payout.

Date of payment (payable date) – This is the date the company mails out the dividend to the holder of record. This date is generally a week or more after the date of record so that the company has sufficient time to ensure that it accurately pays all those who are entitled.

Why All These Dates?
Ex-dividend dates are used to make sure dividend checks go to the right people. In today's market, settlement of stocks is a T+3 process, which means that when you buy a stock, it takes three days from the transaction date (T) for the change to be entered into the company's record books. As mentioned, if you are not in the company's record books on the date of record, you won't receive the dividend payment. To ensure that you are in the record books, you need to buy the stock at least three days before the date of record, which also happens to be the day before the ex-dividend date.

As you can see by the diagram above, if you buy on the ex-dividend date (Tuesday), which is only two days before the date of record, you will not receive the dividend because your name will not appear in the company's record books until Friday. If you want to buy the stock and receive the dividend, you need to buy it on Monday. (When the stock is trading with the dividend the term "cum dividend" is used). But, if you want to sell the stock and still receive the dividend, you need to sell on or after Tuesday the 6th.

*Note: Different rules apply if the dividend is 25% or greater of the value of the security. For details see the NASD notice (PDF file) explaining dividend issues.

A Money Machine?
Now that we understand that a dividend can be received by purchasing the stock before the ex-date, can we make more money? Nope, it's not that easy. Remember, everybody knows when the dividend is going to be paid, and the market sees the dividend payout as a time when the company is giving out a part of its profits (reducing its cash). So the price of the stock will drop approximately by the amount of the dividend on the ex-dividend date. The word "approximately" is crucial here. Due to tax considerations and other happenings in the market, the actual drop in price may be slightly different. In any case, the point is that you can't make free profits on the ex-dividend date.

Conclusion
The reasons for and effects of all these dates are by no means easy to grasp. It's important to clear up any confusion between ex-dividend and record dates. But always keep in mind that when you're investing in a dividend paying stock, it's more crucial to consider the quality of the company than the date on which you buy in.

Cheers,

Investopedia Staff