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It was noted in the chapter that the stock price drops by the amount of the dividend on the ex-dividend date. Why does the stock
It was noted in the chapter that the stock price drops by the amount of the dividend on the ex-dividend date. | |
Why does the stock price drop by that amount on that date? |
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If stock prices routinely dropped by only half the amount of the dividend, what opportunity would this provide to investors? Illustrate your answer. |
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