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this is nothing, but I forget it from time to time

- in fixed income like bonds, when you buy and sell is irrelevant in terms of accrued interest. So if you buy something that pays bi-annually and you buy 2.5 months in you get 3.5 months when the next payment comes in - or you get that if you exit.

- in fixed income like preferred stocks, when you buy and sell is directly related to when you get the payment. You have to be a person of record to get the payment, so if can buy a week before the payment you get the payment for the entire period - even though you owned it only 7 days or 4 days.

In other words, you could own something for 372 days out of the year and get 5 quarterly payments. So a preferred you buy at $22.50 that pays $1.25 a year if you buy 3 days before the ex-date you'll get 5 payments. Or you get a yield in this case of 31.25c x 5 or $1.5625/22.4 or about 7%, or slightly under 7% annualized. This is a lot different than 5.6%.

In theory, the price of the preferred ought to correct for this issue by going higher but it often doesn't work that way. Often times it only takes a week or two or three for older price to be restored.
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