Ex

A prefix is used to exclude specified benefits when security is quoted. A share is described as ex ­ dividend (xd or ex-div) w)1en a potential purchaser will no longer be entitled to receive the company’s current dividend. The right to which remains with the ven­dor. Government stocks go ex-dividend 36 days before the interest payment. Similarly, ex-rights. ex-scrip, ex­ coupon, ex-capitalization (ex-cap). and ex-bonus means that each of. These benefits belong to the vendor rather than the buyer. Ex-all means that all benefits belong to the vendor. Cum­ (Latin: with ) has exactly the opposite sense. Meaning that the dividend or other benefits belong to the buyer rather than the seller. The price of a share that has gone ex-dividend will usually fall by the amount e,f the dividend, while one that is cum-dividend will usually rise by this amount. However. in practice, market forces usually mean that these falls and rises are often slightly less than expected.