Here's a bit of a conundrum - or am I totally missing the point.

This investment company (biggest faller today) is proposing to wind up. So, seemingly nothing to be made here. But whenever I see a big one day fall in any company I'm always interested to know why. So I just read through their last few RNS announcements.

This was last Thursdays':

Income & Growth Trust PLC
16 March 2006


AMENDMENT TO ANNOUNCEMENT

This announcement replaces the earlier announcement (RNS No 8946Z) released at
09.09 this morning. The dividend declaration announced this morning was not
less than 2.49p per Income Share. This was incorrect and the correct dividend
declaration is not less than 2.50p which is shown below. Please see below the
correct announcement


The Income and Growth Trust PLC

Dividend Declaration

16 March 2006

Further to the announcement on 6 March 2006 of recommended proposals for the
voluntary winding-up of The Income & Growth Trust PLC and Income & Growth
Securities PLC, the Board has today declared a fifth interim dividend in respect
of the period ending 31 March 2006, estimated to be not less than 2.50p per
Income Share and not less than 1.60p per Ordinary Share. The dividends will
have a record date of 24 March 2006 and will be paid on 31 March 2006 to
Shareholders on the register on the record date.


Now am I missing something here.

If I understand this correctly, I have up until the record date (this Friday) to purchase ordinary shares that will entitle me to a dividend payment of not less than 1.6p. Considering that I can buy these shares at 0.75p (at the time of posting) it appears to be a case of money for old rope !!!

I just looked at today's trades and it seems that a few soles are buying in, but not too great a volume. Are they thinking the same as me.

I've probably misunderstood this completely, but can't seem to work out where. Anybody have any idea?

I don't hold this stock and I'm not going to leap in until this apparent discrepancy is explained to me.

stockdog,

I may ring them in the morning.

I may ring the estate agent afterwards!

Andy, stockdog

Thanks for your tax analysis, but after having a think on this overnight I think that the answer may lie with the mysterious 'close period'. The record date may well be this Friday, but the close period may have started earlier this week which would mean that any purchases made during this period will be marked ex-dividend and the rights remain with the seller. I might still be wrong though.

I think I'll leave it alone, sd, on the basis that if I don't fully understand what's going on, I'm likely to get bugg***d up. ;-)