Ex-Dividend Date
The first day a stock trades WITHOUT entitlement to its upcoming dividend. To receive the dividend, you must own the stock at the close on the day BEFORE the ex-date. On the ex-date itself the share price drops by approximately the dividend amount at the open, mechanically re-marking the lower forward economic value. "Dividend capture" strategies that buy just before ex-date and sell just after are rarely profitable for retail because the drop typically offsets the dividend (often more so after taxes).
Lessons that use this term
Related terms
Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
Open this term in the app → — no account needed; browse the full glossary while you research.