I'm unsure about how to go about investing in a certain stock
Hi everyone.
I know some of the basic theory behind investing, but I'm not sure about how it actually happens.
Eg BMO's stock has a dividend date 25-NOV-10, and I create a TFSA with iTrade tomorrow to buy BMO stock, then how does the dividend come to me? Is it just deposited in my iTrade account (so if I contribute the $5000 max and get $100 in dividends I'd have $5100 in my TFSA to invest with)?
Also, lets say I purchase 2 put options of company A for a strike price of $10 using the TFSA and a month later they are in the money because the stock is at $8, at any time before its expiry I can exercise the option and my gain would be (10-8)X200-premium price?
Thanks!
I know some of the basic theory behind investing, but I'm not sure about how it actually happens.
Eg BMO's stock has a dividend date 25-NOV-10, and I create a TFSA with iTrade tomorrow to buy BMO stock, then how does the dividend come to me? Is it just deposited in my iTrade account (so if I contribute the $5000 max and get $100 in dividends I'd have $5100 in my TFSA to invest with)?
Also, lets say I purchase 2 put options of company A for a strike price of $10 using the TFSA and a month later they are in the money because the stock is at $8, at any time before its expiry I can exercise the option and my gain would be (10-8)X200-premium price?
Thanks!