Ex Dividend Means

The ex-dividend is the term which is used in the context of stock market where it refers to that date subsequent to which every share that is traded does not have any right to claim the dividend. It can be better explained with the help of an example, suppose Microsoft company after good earnings declares divined to the tune of $4 per share and the ex dividend date is 4th April then if an investor buy the stock after 4th April then he or she is not entitled for the dividend, and after that date the share will trade at ex divided price so in the above example if the price of Microsoft is $100 then after 4th April it will trade at $96.

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