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Ex-Date

What is an Ex-Date?

Short for "ex-dividend date," this is the strict cutoff line set by the stock exchange. If you buy the share on or after this date, the dividend or bonus shares go to the previous owner, not you. You absolutely must buy the stock one day before the ex-date to qualify. On the ex-date itself, the exchange automatically drops the stock's opening price by the exact amount of the dividend. It happens mechanically, so don't panic and sell your shares when you see a sudden, unexplained dip in the morning.

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