Ex-Dividend

Ex-dividend - An ex-dividend is a security that no longer provides the right to receive the most recent dividend. An ex-dividend can also refer to the period in between the time a dividend was announced and the actual payout. NASDAQ declares the ex-dividend date. 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.