What Is Ex Dividend Date? A Comprehensive Guide

What Is Ex Dividend Date? This critical term in the stock market dictates who receives the next dividend payment. At what.edu.vn, we break down complex financial concepts into easy-to-understand explanations, offering you a free resource for all your questions. Learn about payout dates, dividend yields, and stock ownership rights with our comprehensive guide.

1. Understanding the Ex-Dividend Date

The ex-dividend date, often referred to as the “ex-date,” is a crucial date for investors interested in receiving dividend payments. It’s the day on which a stock starts trading without the value of the next dividend payment included in its price. To put it simply, if you purchase a stock on or after the ex-dividend date, you will not be entitled to receive the upcoming dividend. The seller of the stock, who owned it before the ex-dividend date, will receive the dividend instead. This date is set by the exchange where the stock is traded and is usually one business day before the record date.

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