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LSDefine
Simple English definitions for legal terms
ex-dividend date
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A quick definition of ex-dividend date:
Ex-Dividend Date: The ex-dividend date is the day on or after which a person who buys a stock or security will not receive the recently declared dividend. This means that if you buy a stock on or after the ex-dividend date, you will not be entitled to receive the dividend payment. It is also known as the ex-date.
A more thorough explanation:
The ex-dividend date is the date on or after which the buyer of a security does not acquire the right to receive a recently declared dividend. It is also known as the ex-date.
Let's say a company declares a dividend of $0.50 per share and sets the ex-dividend date as July 1st. If you buy the stock on or before June 30th, you will be entitled to receive the dividend. However, if you buy the stock on or after July 1st, you will not receive the dividend.
Another example is if you own a stock and want to sell it, you need to make sure you sell it before the ex-dividend date if you want to receive the dividend. If you sell it on or after the ex-dividend date, the buyer will receive the dividend instead of you.
The ex-dividend date is important for investors who want to receive dividends from the stocks they own. It is the date on or after which the buyer of a security does not acquire the right to receive a recently declared dividend. The examples illustrate how the ex-dividend date works and how it affects investors who own or want to buy/sell stocks.