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Market Intelligence › Basic Terminologies
The difference between two dates that matters in every corporate action
Published by The Retail Trader · JUL 29, 2026 · Market Basics
Every dividend, bonus or split comes with two dates, and people often look at the wrong one. Understand the difference between the two and the question of which day you must buy by is settled for good.
The record date is the day on which the company looks at its shareholder list. Whoever's name is on that list gets the benefit.
The ex-date is the day from which the stock trades without the benefit. Anyone who buys on or after the ex-date does not get the benefit of that cycle.
Now that the settlement cycle is shorter, the two dates fall almost together. Things to remember:
• To get the benefit, you must hold the position by the last trading day before the ex-date.
• On the ex-date the price is often adjusted by about the amount of the dividend — that fall is not news.
• Buying only for the dividend and selling right away usually leaves you with nothing, because the price drops by the same amount.
• The date of every action is in the company's exchange filing, not in some forwarded message.
Entering a trade for the sake of a dividend is not a strategy; it is a tax and timing calculation that works against most retail traders. Take a position for the quality of the company, not for a payout date.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed by the exchanges, SEBI and RBI from time to time, so verify every number yourself with your broker or the official source.