Ex-dividend is a stock trading term that specifies when a declared dividend is owned by the seller rather than the buyer. The term literally means "without the dividend" because once a share trades ex-dividend, the buyer no longer has the right to receive the most recently declared dividend.

 

Investors need to buy the dividend-paying stock at least two days before the record date, since trades take two days to settle. Since the ex-dividend date is usually set two business days prior to the record date, investors need to own the stock one day before the ex-dividend date to receive the dividend. 

 

While the stock price typically drops by the amount of the dividend on the ex-dividend date, there is no guarantee that this will happen. Traders usually price any dividend distribution into the stock price during the normal course of business to reflect the company's decreased total assets. This makes it very difficult for individuals to profit by buying before the ex-dividend date and quickly selling thereafter. 

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We instituted a complimentary webinar series to enable our subscribers to receive concise instruction on issues and ideas affecting our industry without having to leave your office.

Our next topic: 

"How National Estate Planning Awareness Week Can Build Your Practice & Your Community" 

is scheduled for Wed, Sep 26 from 11:30a to 12:00p ET.

Here is a synopsis:

Find out what your colleagues are doing to participate in National Estate Planning Awareness Week how it can help your community, clients, and prospects while growing your business. Our keynote speaker will be Valentino Sabuco, Executive Director of The Financial Awareness Foundation. The Foundation recently released the "Improving Financial Awareness & Financial Literacy Movement Report" which you can access by clicking HERE.  

  

Registration will open in September.