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Finance GlossaryEx-Dividend Date
Ex-Dividend Date
Definition of Ex-Dividend Date
The ex-dividend date is the trading day on and after which a new buyer of the stock is not entitled to any dividends. Most traders say that a stock has gone ex-dividend when this happens.
Traditionally, the ex-dividend date is set a day before the record date when a company evaluates its records for existing shareholders. If a trader buys a stock that has gone ex-dividend from a seller, the one who'll get dividends is the seller.
Traditionally, the ex-dividend date is set a day before the record date when a company evaluates its records for existing shareholders. If a trader buys a stock that has gone ex-dividend from a seller, the one who'll get dividends is the seller.
Related Terms
Quarterly Results
Quarterly Results refer to the financial statements released by publicly listed companies every three months, covering a specific quarter of the fiscal year. These reports include income statements, balance sheets, cash flow statements, and key metrics like revenue, net profit, earnings per share (EPS), expenses, etc. They offer investors and analysts a snapshot of operational performance, growth trends, and future guidance, enabling better assessment of the company’s financial health and strategic direction compared to annual reports.
American Option
An American Option allows the contract holder to exercise the right any time before or on the expiry date. American style options contracts are not available in India.
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The guarantee could be:
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- Secondary: Guarantee (assuring that the outcome will be met)
Operating Leverage
Operating Leverage is a measure of how much a company's operating income changes as its sales revenue changes. It is defined by the ratio between fixed cost and variable cost within the cost structure of a company. A company with high operating leverage has a higher percentage of fixed costs relative to variable costs. Companies in capital-intensive sectors such as manufacturing, telecommunications, or infrastructure are likely to have high operating leverage. High operating leverage can result in a higher increase in profits as sales rise, but can also cause a higher decrease in profits as sales fall.
Matching Orders
Matching Orders refers to the process by which a stock exchange pairs buy and sell orders, prioritising based on price and time (Price-Time Priority). If a buyer’s price matches a seller’s price (order matching), a trade is executed. This automated mechanism ensures fair, transparent, and efficient order execution in the market.
Income Stocks
Income stocks are shares of companies that help you earn a steady income, typically in the form of dividend payouts. At the same time, income stocks are known to have lower risk compared to others and thus, relatively decent returns over a period of time. But the consistently growing dividend yield makes up for the perceived lack of returns.
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