Definition XD (Ex-Dividend)

XD stands for ex dividend and is defined as the calculated time between that of the announcement and payment of dividend.

It is a symbol used by investors to identify that a stock is trading at ex-dividend. It is also denoted by “X” only as well.

Explanation of XD (Ex-Dividend)

Some portion of the company’s earning is distributed among the shareholders. This portion is known as dividend. When a stock is trading ex-dividend, the current stockholder has received a recent dividend payment and whoever purchases the stock will not receive the dividend. The stock’s price should be lower as a result.