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The ex-dividend date (typically 2 trading days before the record date for U.S. securities) is the day on which all shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. This is an important date for any company that has many stockholders, including those that trade on exchanges, as it makes reconciliation of who is to be paid the dividend easier. Existing holders of the stock will receive the dividend even if they now sell the stock, whereas anyone who now buys the stock will not receive the dividend. It is relatively common for a stock's price to decrease on the ex-dividend date by an amount roughly equal to the dividend paid. This reflects the decrease in the company's assets resulting from the declaration of the dividend. The company does not take any explicit action to adjust its stock price; in an efficient market, buyers and sellers will automatically price this in.

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16y ago

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Related Questions

What time can you sell shares to qualify for the dividend?

You can sell shares to qualify for the dividend on or after the ex-date (ex-dividend date), which will be announced the company


What is special cum dividend?

After a share has been marked ex-dividend, and before the payment date, shares can be bought with the dividend if you can find a counterparty who will sell them to you in this manner. Equally shares can be bought and sold ahead of the ex-dividend date, "Special Ex" ie without the dividend.


How do you calculate ex-stock dividend price?

Ex-stock dividend is equal to the price of the dividend of the stock, the only difference is the face that the dividend is actually paid to the seller rather then the buyer of the stock.


If you sell a stock on the ex dividend date do you still get the dividend?

yes!


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.


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.


What is the symbol for WisdomTree China Dividend Ex-Financials Fund in NASDAQ?

The symbol for WisdomTree China Dividend Ex-Financials Fund in NASDAQ is: CHXF.


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


Why does a stock drop on the ex-dividend date?

A stock drops on the ex-dividend date because on that day, the stock no longer includes the right to receive the upcoming dividend payment. This change in the stock's value reflects the value of the dividend being paid out to shareholders.


What is a dividend rate?

Dividend rate is defined as a % when compared to the face value of a stock. Dividend is nothing but periodic sharing of profit by public limited companies with its share holders. Assuming a stock with a face value of Rs. 10/- declares a dividend of Rs. 5/- per share then dividend rate would be 50%


How long do you need to own a stock before being paid dividends?

you must own the stock prior to the ex-dividend date to receive the recently announced dividend. owning the stock one day before the ex-dividend date qualifies an investor to that dividend payout


Why do stocks drop on the ex-dividend date?

Stocks drop on the ex-dividend date because on that day, the stock price is adjusted to account for the dividend payment that will be given to shareholders. This adjustment reflects the value of the dividend being paid out, causing the stock price to decrease accordingly.