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.