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

The ex-dividend date was coming up hard and we all had to get ready because it was very important to us.

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You may want to try and close the deal on the ex-dividend date so that it will go over well with the other party.

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The ex-dividend date had not yet been reached so we finally proceeded with scheduling the meeting for after this date.

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date of record reinvestment date