Ex-Date

Ex-date - An ex-date will be the date in which a security has split and the price changed to reflect that split. In the case of a dividend the ex-date is the first day of the ex dividend period. Creating an ex-date in this way will facilitate all unfinished transaction prior to the record date, which is the date that an investor must own shares in order to receive a dividend. If the pending transactions have not been completed by the ex date, the stock exchange will reduce the price of the stock by the amount that would have been the dividend. The investor has to absorb the decrease in price because he or she did not own the stock in time.