XD (ex-dividend)

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Definition:

XD is a symbol used in newspapers to indicate that a stock is trading ex-dividend or without a dividend.

If a stock is bought on or after the XD date, the dividend is paid to the seller. If a stock is bought prior to the XD date, the dividend is paid to the buyer. The XD date is four business days prior to the holder-of-record date. It is the date when the right to the dividend leaves the stock.

Also Known As: X date

Examples:

Joan bought shares of XYZ Corporation on December 7. The holder of record date is December 10. As a result, Joan will receive the dividend because she bought the stock less than 4 days before the XD date.
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