Ex-Dividend Date
The first day a share trades without entitlement to a declared dividend.
Formula
Theoretical Ex-Dividend Price = Cum-Dividend Price - Dividend per Share
Unit
₹
In depth
On the ex-date the share price falls by approximately the dividend, because a buyer from that day no longer receives it — the value has simply moved from the company to the previous holder. This is why dividend capture strategies, buying just before the ex-date and selling after, do not work: the price adjustment offsets the dividend, and transaction costs and tax make the round trip negative. The actual fall differs from the theoretical one because the market moves for other reasons on the same day. Understanding this is what prevents a holder from mistaking the ex-date drop for bad news.
Worked example
A ₹60 share going ex a ₹1.20 dividend opens around ₹58.80. The holder has ₹58.80 of share and ₹1.20 of dividend — the same ₹60, now with the dividend taxable at slab rates.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Ex-Dividend Date” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.