ex dividend date

Shares are quoted ‘ex dividend’ on the fourth business day before the company's Record Date. To be entitled to a dividend a shareholder must have purchased shares before the ex dividend date. The share price may fall on the ex dividend date, with the fall in price being related to the amount of dividend being paid, on the basis that the buyer will not, in the ordinary course of events, receive the dividend because they will not be registered by the Record Date.