Ex-Date
Pronunciation: ex-date
The date on or after which a buyer of shares is no longer entitled to receive the declared dividend or other corporate action benefit.
Full Definition
The ex-date (short for ex-dividend date) is the first trading day on which shares trade without the entitlement to a recently declared dividend or other corporate distribution. An investor who purchases shares on or after the ex-date will not appear on the transfer agent's records as of the record date and is therefore not entitled to the distribution. Under T+1 settlement, the ex-date is one business day before the record date. The ex-date is set by the exchange on which the shares trade. Editors must carefully distinguish the ex-date from both the record date and the declaration date in corporate action documents, as the three often appear in close proximity.
Usage
Usage note: Always hyphenate. 'Ex-dividend date' is the formal term; 'ex-date' is an acceptable abbreviation in context after first use.
In Context
- "The ex-date for the special dividend was set by NYSE as April 3, one business day prior to the record date." — Corporate Action Notice
- "Editors should confirm the sequence of declaration date, ex-date, record date, and payment date before publication." — Style Guide — Corporate Actions