Q:

How do you buy stock before the ex-dividend date?

A:

Quick Answer

To buy a stock before the ex-dividend date, visit the official NASDAQ website to see the upcoming ex-dividend dates of various stocks. This deadline serves as the time frame to sign up for a brokerage account and purchase a stock, according to NASDAQ.

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Full Answer

A company with earnings can choose to issue dividends, as noted by the Houston Chronicle. When doing so, the company declares what is known as the ex-dividend date. A purchaser must own the stock prior to the ex-dividend date in order to be eligible for the dividend payment, as noted by the Securities and Exchange Commission. With a purchase made after the ex-dividend date, the dividend payment remains with the seller of the security.

The NASDAQ is both an index and trading exchange, as listed by About.com. The official website of the organization contains information related to ex-dividend date, dividend amount, record dates, announcement dates and payment dates. The information is organized in calendar format, meaning a visitor can sort by date to find the desired ex-dividend date.

Once these dates and associated securities are determined, sign up for a discount brokerage to begin trading stocks. Common discount brokerages include OptionsHouse, TD Ameritrade, Scottrade, Schwab, E-Trade and Fidelity, as listed on the official NASDAQ website.

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