ex-dividend
Definition
A security which no longer carries the right to the most recently declared dividend; or the period of time between the announcement of the dividend and the payment. A security becomes ex-dividend on the ex-dividend date (set by the NASD), which is usually two business days before the record date (set by the company issuing the dividend). For transactions during the ex-dividend period, the seller, not the buyer, will receive the dividend. Ex-dividend is usually indicated in newspapers with an x next to the stock or mutual fund's name. In general, a stock's price drops the day the ex-dividend period starts, since the buyer will not receive the benefit of the dividend payout till the next dividend date. As the stock gets closer to the next dividend date, the price may gradually rise in anticipation of the dividend.
 Cite this definition
Related Terms
ex-all
'ex-dividend
' appears in the definitions of these terms on BusinessDictionary.com
date of record
Related Research Articles from the InvestorGuide.com University
Analysts and Earnings EstimatesLearn about analyst reports, buy and sell recommendations, earnings estimates and projections, earnings whispers, and investment bank conflicts of interest. 
Choosing a StockWhich companies should I invest in? Learn how to find a company, gather the research, and do the analysis. Also gives suggestions of things to look for while conducting this process.
Stock ActionsWhat are the different types of stock actions? Read about dividends, splits, and buybacks. Learn the consequences and the reasoning behind these actions.
Related Resources from InvestorGuide.com
Stock of the Day NewsletterLearn about stocks that are making headlines today by signing up for our free newsletter. Stock Research ToolUsing our stock research tool, you have access to our stock tracker, quotes, interactive charts, news, analysis and profile information. Click here to use our stock research tool or enter a stock ticker here: Featured Sponsor
|
