Ex Dividend


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Ex Dividend

A phrase used by stockbrokers that denotes that a stock is sold without the purchaser receiving the right to own its recently declared dividend which has not yet been paid to the stockholders.

The seller of a stock sold ex dividend retains the right to receive payment of the declared dividend. The purchaser of such a stock usually buys it at a price that is reduced by the amount of the dividend to be paid to the seller.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.