Ex-dividend date

Ex-dividend date

Ex-dividend date is one of key dates related to paying a dividend. The ex-dividend date is the day when a dividend and an underlying share split. Before the ex-dividend date, if the seller sells the share, he also sells the right to receive the dividend. The buyer pays the price and gets the share plus the right. On and after the ex-dividend date, if the seller sells the share, he retains the right to get the dividend. The buyer gets the share only.

Prior to this date, the share is said to be cum-dividend (with dividend). On and after this date the stock becomes ex-dividend (without dividend).

Usually, the ex-dividend date predates the record date by two business days. On the record date (or holder-of-record date), the company closes its books and creates a list of those who will receive a dividend. On a payment date, the company sends checks. You only need to own the stock one day to be entitled to receive the dividend payment. If you buy before the ex-dividend date, and sell on the ex-dividend date or after, you receive the dividend payment.

External links

* [http://www.sec.gov/answers/dividen.htm SEC page on Ex-Dividend Date]
* [http://www.nasd.com/RulesRegulation/NoticestoMembers/2000NoticestoMembers/NASDW_003997 NASD (Nasdaq) document on ex-dividend dates]
* [http://www.dividendinvestor.com/ US, UK and Canadian Ex-Dividend Date Research Center]


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • dividend date — Date from which the economic rights start ( i.e. receiving dividends) attached to the stock. Euroclear Clearing and Settlement glossary * * * dividend date UK US noun [C] ► FINANCE the date on which a dividend is paid: »Direct payment to your… …   Financial and business terms

  • dividend date — Date from which the economic rights start (i.e. receiving dividends) attached to the stock …   Euroclear glossary

  • ex-dividend date — The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and… …   Financial and business terms

  • Ex-dividend date — The first day of trading when the seller, rather than the buyer, of a stock will be entitled to the most recently announced dividend payment. This date set by the NYSE (and generally followed on other US exchanges) is currently two business days… …   Financial and business terms

  • Dividend — This article is about financial dividends. For dividends in arithmetic, see Division (mathematics). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis  …   Wikipedia

  • Dividend Rollover Plan — An investment strategy in which a dividend paying stock is purchased right before the ex dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex dividend date. The sole intention of …   Investment dictionary

  • Dividend Capture — A timing oriented investment strategy revolving around the purchase and sale of dividend paying stocks. Dividend capture is specifically the practice of buying a stock just prior to the ex dividend date in order to capture the dividend, then… …   Investment dictionary

  • Dividend Arbitrage — An options trading strategy that involves purchasing put options and an equivalent amount of underlying stock before the ex dividend date and then exercising the put after collecting the dividend. When used on a security with low volatility… …   Investment dictionary

  • dividend rollover plan — An investment strategy that entails the purchasing before and selling after of a stock right before its ex dividend date in order to collect the dividends paid out by the stock and capture a trade profit. Bloomberg Financial Dictionary …   Financial and business terms

  • Dividend imputation — is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. In comparison to the classical system, it… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”