Glossary

Ex-dividend

Ex-dividend means without dividend, referring to the sale of a security after a dividend payment is announced but before it gets distributed.

Ex-dividend is the interval between the recorded date and the payment date during which the stock trades without its dividend. Buyers of stocks sold ex-dividend do not receive the recently declared dividend.

What is an ex-dividend date?

The ex-dividend date is an investment term describing the timing of dividend payments of stocks, trusts, or other financial holdings, public and private. It is also called the reinvestment date.

The ex-dividend date of a stock is the day the stock begins trading without the subsequent dividend value. The ex-dividend date is crucial as it determines if a stock buyer will be entitled to receive the company dividend.

There are four dates concerning dividends: the declaration date, the ex-dividend date, the record date, and the payable date. On the ex-dividend date, stock prices usually decline by the amount of the dividend.

The ex-dividend date marks the cut-off point for shareholders to get credited with a pending stock dividend. To receive the agreed dividend, shareholders must buy the stock before the ex-dividend date.

Search the Academy

Look up the meaning of hundreds of trading terms in our comprehensive glossary.

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z