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.
This content can be found on the following page:
http://www.investorwords.com/cgi-bin/getword.cgi?id=1819&term=ex-dividend%20date
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
'ex-dividend date' appears in the definitions of these other terms on BusinessDictionary.com:
dividend rollover, do not reduce (DNR)
Related Research Articles from the InvestorGuide.com University
Choosing a Stock
Which 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.
Analysts and Earnings Estimates
Learn about analyst reports, buy and sell recommendations, earnings estimates and projections, earnings whispers, and investment bank conflicts of interest.
Stock Actions
What 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 Newsletter
Learn about stocks that are making headlines today by signing up for our free newsletter.
Stock Research Tool
Using 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:
|
