0 relating to a share that is sold where the buyer does not have the right to receive a particular dividend (= payment):
He will arrange with his broker for the purchase the following day of shares ex-dividend.
The capital cost of the stock rises as the ex-dividend date approaches, and then falls when the stock goes ex-dividend.
The point is that before they are declared ex-dividend, there is no time to get them out of the first man's name.
The mechanism by which exempt institutions can sell ex-dividend before the ex-dividend date and receive the gross amount of interest is as follows.
We are concerned with a single dividend becoming due, with the result that one gets a price change through the security going ex-dividend.
The ex-dividend date is normally two business days (3 minus 1) before the record date.
The ex-dividend date is two business days prior to the record date.
To be a stockholder on the record date an investor must purchase the stock before the ex-dividend date.
