ex-dividend date

Definition

The first day of the ex-dividend period. The ex-dividend date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-dividend date, he or she will be ineligible for the dividend payout. Further, for all pending transactions that have not been completed by the ex-dividend date, the exchanges automatically reduce the price of the stock by the amount of the dividend. This is done because a dividend payout automatically reduces the value of the company (it comes from the company's cash reserves), and the investor would have to absorb that reduction in value (because neither the buyer nor the seller are eligible for the dividend). also called reinvestment date.

Use ex-dividend date in a sentence

Without the ex-dividend date my transaction would not have been complete and I would not have received the dividend payout because my transaction was still pending.

​ Was this Helpful? YES  NO 1 out of 1 people found this helpful.

Show more usage examples...

Featured Advertiser

Browse by Letter: # 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
Do Not Reduce DNR