Shares bought after the ex-dividend date will not entitle the buyer to receive recently declared dividends. A buyer must be the owner of record before the ex-dividend date in order to receive the dividend. The date on which the owner of shares is determined, which is known as the record date, is normally two days after the ex-dividend date. However, the settlement period for a share purchase is normally three days. Only after three days have elapsed is ownership transferred.

See also: Cum Dividend