What does an ex dividend refer to?
The date on which a purchaser of publicly traded shares is not entitled to receive a dividend that has been declared and the seller of such shares is entitled to retain the dividend. The ex dividend date is a matter of agreement or of convention to be established by the securities exchange. On the first day shares are traded without the right to receive a dividend, the price will decline by approximately the amount of the dividend; such shares are often referred to as “trading ex dividend.
