Ex Dividend Date
By: admin,
Ex-dividend date is normally set for stocks two business days prior to the record date. If investors purchase a stock on or after its ex-dividend date, they will not receive the dividend payment. If investors purchase a stock prior to its ex-dividend date, they will receive the dividend payment. The major exchanges require four business days prior to the Record Date for recording ownership changes. The day that begins this four-day period is the Ex-Date. Investors who purchase the stock prior to the Ex-Date are eligible for the latest dividend; investors who purchase the stock on or after the Ex-Date are not entitled to the dividend. Empirical evidence has shown that this also is the date that the market reflects the dividend policy in the stock price.