Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
If you want to play with share definition, here are a few things that I would suggest:

  • right now when an individual buy shares indirectly (mutuals funds, retirement invested in stock, ...) two rights are transfered: the right to choose what stock to buy (let's say rightly so) and the right to vote at shareholder meetings. I would cancel this second right: your money manager does the stock picking, but you get to vote.

  • currently to get a dividend from a share, you just buy it at the right date five minute before closing and sell it the next day, you get the same dividend as someone who held the stock for a full quarter/year or more. I would link the dividend paid to a given to the time the holder hold on to the share.
by Laurent GUERBY on Sun Sep 10th, 2006 at 04:34:30 PM EST
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Especially the first is extremely important. I'll put my thoughts on that together later.

Nothing is 'mere'. — Richard P. Feynman
by Migeru (migeru at eurotrib dot com) on Sun Sep 10th, 2006 at 04:38:00 PM EST
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Thanks! Ping me if I don't react :)
by Laurent GUERBY on Mon Sep 11th, 2006 at 06:35:54 AM EST
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As for dividends the effect you are describing it is usually factored in to the price. So the day after the dividend is declared the price drops by an equivalent amount. If the dividend is only a few cents per share the effect may not be noticeable on a volatile stock.

Most bonds are traded so that interest is figured daily and the buyer has to pay the seller the proportionate amount of accrued interest which they get back along with the interest from the rest of the period at the next payment date.

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Sun Sep 10th, 2006 at 04:56:00 PM EST
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The point was to encourage long term ownership. BTW I did an article in french on the  dividend ex date arbitrage
by Laurent GUERBY on Mon Sep 11th, 2006 at 02:53:15 AM EST
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