Ex-Dividend

**Ex-Dividend Date**

The ex-dividend date is the date on which a stock trades without the right to receive the next dividend payment. This means that if you buy a stock on or after the ex-dividend date, you will not receive the next dividend payment. The ex-dividend date is usually two business days before the record date.

**Why Does the Ex-Dividend Date Matter?**

The ex-dividend date matters because it determines who is eligible to receive the next dividend payment. Shareholders of record on the record date will receive the dividend payment. Shareholders who buy the stock after the ex-dividend date will not receive the dividend payment.

**How to Calculate the Ex-Dividend Date**

The ex-dividend date is calculated as follows:

Ex-Dividend Date = Record Date - 2 Business Days

For example, if the record date is January 15, the ex-dividend date will be January 13.

**How Does the Ex-Dividend Date Affect Stock Prices?**

The ex-dividend date can affect the price of a stock. This is because the stock price will usually decline by the amount of the dividend on the ex-dividend date. This is because the dividend is considered a return of capital to shareholders, and the stock price reflects the intrinsic value of the company.

**Conclusion**

The ex-dividend date is an important date for investors to know. It is the date on which a stock trades without the right to receive the next dividend payment. The ex-dividend date can affect the price of a stock, and it is important to understand how it works.