Exdividend

/ɛksˈdɪvɪdɛnd/ adjective

Definition

A stock market term meaning a security is trading without the right to receive the next scheduled dividend payment.

Etymology

From Latin 'ex' meaning 'without' or 'out of' plus 'dividend,' which comes from Latin 'dividendus' meaning 'that which is to be divided.' Standardized in financial terminology in the early 20th century.

Kelly Says

The ex-dividend date is one moment where you can literally see the exact dollar value of expected future profits disappear from a stock's price—it's capitalism in real-time!

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