Ex-date
Also called: ex-dividend date, ex date
The first trading day on which a share trades without the right to an announced dividend or other benefit.
Buyers on or after the ex-date do not receive the coming dividend or benefit; the seller keeps it. On the ex-date, the share price usually falls by about the value of the dividend, other things being equal.
Example
A share trading at ₹420 before the ex-date of a ₹12 dividend would be expected to open around ₹408 on the ex-date.
Learn more in these lessons
- Dividends, splits, bonus shares and other corporate actionsWhat happens to my shares in a split, bonus issue or rights issue?
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