Ex-date
Also called Ex-dividend date
The first trading day a share is sold without the right to an announced dividend or other corporate action.
The ex-date marks the point where a share stops carrying an announced dividend or other benefit. In India, shares settle one trading day after the trade, so a buyer must buy at least one trading day before the record date to be on the company’s list. That makes the ex-date and the record date usually the same day. Shares sit in your demat account, and the date that counts is when they arrive there. Read the full guide in record date vs ex-date.
Questions people ask
What does ex-date mean?
It is the first trading day a share trades without the right to a dividend, bonus or other benefit the company has announced. Buy on or after the ex-date and the benefit goes to the seller.
If I sell on the ex-date, do I get the dividend?
Yes. Your sale settles the next trading day, so you are still the shareholder at the end of the record date and the dividend is paid to you.
Why does a share price fall on the ex-date?
Because a buyer from that day no longer gets the dividend, so the share is worth roughly that much less. The price usually opens lower by about the dividend, though it moves for many other reasons too.
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