What does XD mean?

In finance, XD is an abbreviation for "ex-dividend," which refers to the date on or after which a security is traded without a previously declared dividend. On the XD date, the price of the security is adjusted downward to reflect the dividend payment that has been declared. This date is important for investors who want to receive the dividend payment, as they must own the security before the XD date in order to be eligible for the dividend. Additionally, the XD date is used to determine which shareholders are entitled to receive the dividend, as only those who own the security before the XD date will receive the payment. Therefore, investors need to be aware of the XD date when planning their investment strategies and managing their dividend income.