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Username: LuckyMan

Rating:
Guru Stars

Asked to: Chaoxiang Lee

Date Created: 23 Jan 2017
Category 17
Tag Financial
Question What is an 'Ex-Dividend'?
Advice from Guru
Hello LuckyMan,

Ex-dividend is a classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be given ex-dividend status if a person has been confirmed by the company to receive the dividend payment.

A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.
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