The date on which an investment's dividend or capital gains income is reinvested, if requested by the shareholder, to purchase additional shares. Also known as the ex-dividend date.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The date on which any dividend on a stock that has been declared but not distributed belongs legally to the seller, rather than the buyer. That is, when one sells a stock on or after the ex-dividend date, it will go to the seller when the next dividend comes. On the other hand, if it is sold before the ex-dividend date, the dividend will go to the buyer.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved