As an investor, you may have seen the acronyms “CD”, “XD”, “CR”, “XR”, and so on when you look up the share price of a stock. Or the acronyms may be spelt out in full, such as “Cum Dividend”, “Ex Dividend”, “Cum Rights”, and “Ex Rights”.

What do they all mean? And what do investors have to take note of when it comes to such corporate actions? Here, let’s understand how common corporate actions on the Singapore Exchange (SGX) work. What’s covered:

• Dividend
• Rights
• Bonus
• Entitlement
• Offer

You can find out about the corporate actions for the stocks you from SGX’s website.

Cum Dividend and Ex Dividend (CD and XD)

When a stock trades as “Cum Dividend” or “CD”, it means that the company is paying out dividend soon. It’s like a notice of the amount of dividend to be paid out to shareholders by the company....