ex-dividend date
DefinitionThe 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.
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ex-dividend date is ...
... part of the Dividends, Stocks and Investor Relations subjects.
... part of the Dividends, Stocks and Investor Relations subjects.
Related Terms
ex-date -
Do Not Reduce, date of record, DNR, ex-stock dividends
ex-dividend date appears in the definitions of these other terms on BusinessDictionary.com
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