Define: Ex-Dividend Date

Ex-Dividend Date
Ex-Dividend Date
Quick Summary of Ex-Dividend Date

The ex-dividend date, also known as the ex-date, is the day on or after which purchasing a stock or security will not entitle the buyer to receive the recently declared dividend payment.

Full Definition Of Ex-Dividend Date

The ex-dividend date, also known as the ex-date, is the date on or after which buyers of a security do not acquire the right to receive a recently declared dividend. For instance, if a company declares a dividend of $0.50 per share and sets the ex-dividend date as July 1st, anyone who buys the stock on or before June 30th will be entitled to receive the dividend. However, those who buy the stock on or after July 1st will not receive the dividend. Similarly, if you own a stock and wish to sell it, you must do so before the ex-dividend date in order to receive the dividend. If you sell it on or after the ex-dividend date, the buyer will receive the dividend instead. The ex-dividend date is crucial for investors who desire to receive dividends from their stocks. It determines the point at which buyers of a security no longer have the right to receive a recently declared dividend. The examples provided demonstrate how the ex-dividend date operates and its impact on investors who own or wish to buy/sell stocks.

Ex-Dividend Date FAQ'S

The ex-dividend date is the date on which a stock begins trading without the dividend.

If you own shares of a stock on the ex-dividend date, you are entitled to receive the upcoming dividend payment. If you buy shares on or after the ex-dividend date, you will not receive the dividend.

If you sell your shares on the ex-dividend date, you are still entitled to receive the dividend payment, as long as you owned the shares before the ex-dividend date.

The ex-dividend date is typically set by the stock exchange on which the stock is listed. It is usually set two business days before the record date.

Yes, the ex-dividend date can change if there are any corporate actions or events that affect the dividend payment.

The ex-dividend date is important for dividend investors as it determines whether they will receive the upcoming dividend payment.

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

The ex-dividend date is the date on which a stock begins trading without the dividend, while the record date is the date on which the company determines which shareholders are entitled to receive the dividend.

No, if you buy shares on or after the ex-dividend date, you will not receive the upcoming dividend payment.

The stock price typically decreases by the amount of the dividend on the ex-dividend date, as the dividend is no longer included in the stock price.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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