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Shares are said to be "cum div" in the period between declaration of the dividend and the last day to trade. A sale of shares while they are "cum div" passes on the right to the next dividend to the transferee (or buyer). Once the shares are "ex-div", after the last day to trade, the dividend no longer accrues to the buyer. For this reason, the share price usually falls by exactly the amount of the dividend on the ex-div date.