A stock that you know is held by long-term individual investors paid a large one-time dividend. You
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A stock that you know is held by long-term individual investors paid a large one-time dividend.
You notice that the price drop on the ex-dividend date is about the size of the dividend payment.
You find this relationship puzzling given the tax disadvantage of dividends. Explain how the dividend-capture theory might account for this behavior.
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