Investing term

What is Ex-date?

The first trading day on which buyers no longer get the upcoming dividend.

The ex-dividend date is the cutoff: buy a stock on or after it and you don't receive the upcoming dividend — the seller keeps it. To collect the payout you must own the shares before the ex-date. On the ex-date the stock price typically drops by roughly the dividend amount, since new buyers no longer get that cash.

For example

A stock pays a $1 dividend with an ex-date of the 10th; buy on the 11th and you miss this payout, and the price has already dropped about $1 to reflect it.

Ex-date is taught hands-on in Stage 8 — Corporate Actions: What Lands in Your Account.

See the lesson →

Related terms

AcquisitionOne company buys another. The bought company's shares are converted to cash, acquirer stock, or a mix at the closing price.Carve-outA parent company sells part of a subsidiary in an IPO, keeping a stake.Corporate actionAny event initiated by a company that changes its securities or distributes value to holders.Cost basisWhat you originally paid for a holding, used to calculate gains and losses when you eventually sell.
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