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Community: Investing Wiki

Term Of The Hour

ex-date effects: Original post by Cam Merritt of Demand Media Many companies reward their owners -- their stockholders, that is -- by paying them a share of the company's profits as a dividend. A dividend usually lowers a company's share price -- but this effect occurs well before the company actually pays the dividend. It actually happens on the "ex-dividend date." The reason lies in the mechanics of…

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