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The Ex date is the last day which the seller will get the declared dividend. It is generally two trading days before the record date.

The record date is the date which the dividend is assigned to the owner on the company's record books.

The difference exists because of the time lag between the actual sale of the stock and when it's recorded on the company's books.

So if you buy a stock on the day after the Ex date, the seller will still get the dividend because his/her name will appear on the company's books on the record date.

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Q: Difference between ex date and record date?
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Can you sell the stock after ex dividend date or after record date?

if you sell shares on ex div. date,before the record do you still receive the dividend


Can you sell the stock after ex-dividend date or after record date?

You can sell the stock whenever you want, but you need to own it on the date of record to get a dividend. That means you need to buy it BEFORE the ex-dividend date.


Are you eligible for dividend if your trade date is after ex-div date however you settle on the record date?

No


What are the 3 dates and their entries that are associated with dividends.?

In the United States, the three dates that are significant for both paying and accounting for any given cash dividend are: 1) Declaration date: Dividends are not payable unless and until the corporation's Board of Directors declares that a dividend will be paid. The date on which they promise to pay a dividend is called the declaration date, and that is the date on which the company incurs an obligation to pay the dividend. Generally on that date the Board will specify the two other important dates: the ex-dividend date, and the payment date. On the day a dividend is declared, the accounting entries are Debit the Retained Earnings account and credit the Dividends Payable liability account for the total amount of the dividend. 2) Ex-dividend date (or "date of record"): The ex-dividend date is the cutoff date used to identify the particular persons to whom an upcoming dividend will be paid. The shareholders listed on the corporation's records as the owners of shares at the ex-dividend date are the ones who will receive payment of the upcoming dividend, whether or not they still own the shares on the date the dividend is paid. There is no accounting entry related to the ex-dividend date. 3) Payment date: This is the date on which the cash dividend is actually paid out to the shareholders. When the dividend is paid, the accounting entries are: Debit the Dividends Payable account and credit the Cash account for the total amount of the dividend. This eliminates the liablility that was recorded when the dividend was first declared, and reflects the funds going out of the corporation's cash when the dividend is paid.And so, why are we reading this?


If an investor buys stock on the ex-dividend date will that individual receive the dividend?

No, the definition of ex-dividend date is trading without the dividend. Any stock purchased "ex-dividend" date is not entitled to the dividend. AND equally as importantly OFFSETTING this - is the insatnt that happens the stock price is reduced by the amiunt of the dividend being paid. NO you cannot "steal" a dividend - that is buy it the day before the divideden gets paid (or ownership date actually) - and sell the day after - all you do is get the dividend and the equally lower stock value.

Related questions

Can you sell the stock after ex dividend date or after record date?

if you sell shares on ex div. date,before the record do you still receive the dividend


Can you sell the stock after ex-dividend date or after record date?

You can sell the stock whenever you want, but you need to own it on the date of record to get a dividend. That means you need to buy it BEFORE the ex-dividend date.


Are you eligible for dividend if your trade date is after ex-div date however you settle on the record date?

No


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