Market Structure · Post-trade
Dividends: Record, Ex & Pay Dates in Depth
The four dividend dates under US T+1, why the ex-date now usually equals the record date, the price drop on ex-day, cum vs ex trading, market claims and short-seller payments, and the special rule for very large dividends.
Step 1 of 7 · Overview30 min read ·
Key idea
Prereqs: Trade Lifecycle Interview Walkthrough; Corporate Actions & Breaks. Next: Special dividends & spin-offs deep dive. Sources: SEC Investor.gov (ex-dividend dates), SEC T+1 rule (effective May 28, 2024), FINRA Rule 11140 (ex-date for large distributions). Dates in examples are illustrative; always read the actual issuer announcement.Next: 1. The four dates