corporate actions · beginner
Ex-date
The ex-date is the first trading day when a stock trades without the right to a declared corporate benefit.
Buyers who purchase on or after the ex-date do not receive that dividend, bonus, or rights entitlement.
In India, ex-dates are coordinated with the settlement cycle and exchange calendars.
Prices often adjust around the ex-date to reflect the value of the benefit going away.
Checking the exchange corporate-action calendar helps avoid confusion around entitlements.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.