Also shown as ‘ex div’ or ‘xd’, this means that, if you buy the shares today, you won’t receive the most recently declared dividend.
Shares are being traded all the time on stock markets, so for administrative reasons there needs to be a point when buyers and sellers agree whether they will receive the most recently declared dividend. The point when the shares purchased will no longer receive the dividend is known as the ‘ex dividend date’ and the shares are said to have ‘gone ex dividend’. The share price will normally fall by the amount of the dividend to reflect this.
If you buy the shares when you’re still entitled to the most recently declared dividend, this is known as the shares being cum dividend.
This is the European Securities and Markets Authority. It replaced the Committee of European Securities Regulators in January 2011. ESMA is an independent EU Authority which helps to safeguard the stability of the European Union's financial system. It focuses on ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection.
ESMA has a key role in the implementation of the AIFM Directive. It is providing technical advice to the European Commission and advising Member States on implementation. More information can be found in the ‘Implementation process and timetable’ chapter.