Ex-Dividend

Ex-dividend is the time span between the announcement and payment of a dividend, while the date of record is the day a shareholder must formally claim shares to be qualified for the dividend.
The ex-dividend date generally goes before the record date, ordinarily by four business days on the New York Stock Exchange. However, a NYSE rule permits the ex-dividend and record dates to be back-peddled when a dividend is over 25% of the current stock price. Why? As the ex-dividend date approaches, typically a stock's price will rise by the dividend amount, then fall by that a lot after the date. A big dividend distribution will thump the stock price way down, however by pushing that date off, investors have a couple of extra days to trade the stock at the higher price.

Features

• Ex-dividend is the point at which an organization's dividend allocations have been indicated.
• The ex-dividend date happens before the record date in light of the fact that a stock trade is settled "T+1" implying that the record of that transaction isn't settled for one business day.
• Investors who purchased the stock before the ex-dividend date are qualified for the next dividend payment while the people who purchased the stock on the ex-dividend date, or later, are not.
• The ex-dividend date of a stock is the day on which the stock starts trading without the subsequent dividend value.