Define: Ex-Date

The ex-date, short for ex-dividend date, is the date on which a stock begins trading without the right to receive the upcoming dividend payment.

The ex-date is typically set by the stock exchange or market where the stock is listed. It is usually set one business day before the record date, which is the date on which shareholders must be on the company’s books to receive the dividend.

If you buy a stock on or after the ex-date, you will not be entitled to receive the upcoming dividend payment. The dividend will instead be paid to the previous owner of the stock.

No, if you sell a stock on the ex-date or after, you will not be entitled to receive the dividend. The dividend will be paid to the new owner of the stock.

Typically, when a stock goes ex-dividend, its price decreases by an amount roughly equal to the dividend payment. This is because the dividend payment is no longer factored into the stock’s value.

No, the ex-date is the cut-off point for receiving the dividend. Regardless of how long you hold the stock after the ex-date, you will not be entitled to the dividend payment.

Not all stocks pay dividends. Some companies choose to reinvest their profits back into the business or use them for other purposes, rather than distributing them to shareholders as dividends.

You can find the ex-date for a specific stock by checking financial news websites, stock exchange websites, or by contacting your broker or financial advisor.

Yes, dividends received on or after the ex-date are generally taxable income. The specific tax treatment may vary depending on your jurisdiction and individual circumstances, so it is advisable to consult with a tax professional.

In most cases, the ex-date is determined by the stock exchange or market and cannot be changed by the company. However, there may be exceptional circumstances where the ex-date is adjusted, such as in the case of a stock split or special dividend.