XD

DEFINITION of 'XD'

A symbol used to signify that a security is trading ex-dividend. XD is an alphabetic qualifier that acts as shorthand to tell investors key information about a specific security in a stock quote. Sometimes "X" alone is used to indicate that the stock is trading ex-dividend. Qualifiers can vary depending on where the stock is quoted, because different news services that supply stock quotes may use different qualifiers.

BREAKING DOWN 'XD'

A dividend is a distribution of part of a company's earnings to the company's shareholders. 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. There are quite a few qualifiers that relate to dividends; "j," indicates that the stock paid a dividend earlier in the year, but currently does not carry a dividend.

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RELATED FAQS
  1. If I sell my shares before the ex-dividend date will I still get the dividend?

    If you sell before the ex-dividend date you will not receive a dividend from the company. The ex-dividend date is the date ... Read Answer >>
  2. How can I find out the ex-dividend date for a stock's dividend?

    Learn about the various information sources from which investors can obtain information about upcoming ex-dividend dates ... Read Answer >>
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    Understand the importance of the ex-dividend date as the critical date for determining which stockholders qualify to receive ... Read Answer >>
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    Learn the trading strategy used for arbitraging the dividend and understand why this complicated, high-risk strategy is not ... Read Answer >>
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    Many years ago, unscrupulous brokers would use the same logic on their clients as a sleazy sales tactic. These brokers would ... Read Answer >>
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