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Finance Dictionary and Glossary of Investment Terms
ex-stock dividends
Definition 1.
A security which no longer carries the right to the most recently declared dividend; or the period of time between the announcement of the dividend and the payment. A security becomes ex-stock dividend on the ex-dividend date (set by the NASD), which is usually two business days before the record date (set by the company issuing the dividend). For transactions during the ex-stock dividend period, the seller, not the buyer, will receive the dividend. Ex-dividend is usually indicated in newspapers with an x next to the stock or mutual fund's name. In general, a stock’s price drops the day the ex-stock dividend period starts, since the buyer will not receive the benefit of the dividend payout till the next dividend date. As the stock gets closer to the next dividend date, the price may gradually rise in anticipation of the dividend. also called ex-dividend.
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Definition 2.
e time period between the announcement of a stock dividend and its actual payment. The buyer of shares during this time period does is not entitled to the dividend.
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