What is Ex Date?

Ex-Date is the date when the already existing shareholders of the company are entitled to get Right Issue Shares or dividends. If the shareholders buy a dividend after paying stock just one day before the ex-date, they will still get the dividend.

If the shareholders buy the dividend on the ex-dividend date, they won’t get the dividend. On the ex-date, the price of a share falls by an amount which is approximately equal to the price of the upcoming dividend.