A parent can acquire the shares in a subsidiary on a "cum div." or an "ex div." basis.

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A parent can acquire shares in a subsidiary either on a "cum div." (with dividend) basis or an "ex div." (without dividend) basis. When shares are acquired on a cum div. basis, the purchaser is entitled to receive the dividend payment for the current period, while with an ex div. acquisition, the purchaser is not entitled to receive the dividend payment.

A Parent Can Acquire the Shares in a Subsidiary on a "Cum