What would you expect to happen to the price of a share of stock on the day it goes ex-dividend? Ignore tax.the price should:
A)increase by the amount of the dividend.
B)decrease by the amount of the dividend.
C)decrease by one-half the amount of the dividend.
D)remain constant.

Question

Quizplus · Accepted Answer

When a stock goes ex-dividend, it means that anyone who buys the stock on or after that date will not be entitled to receive the upcoming dividend payment. Therefore, the stock price should decrease by the amount of the dividend to reflect the fact that the buyer will not receive that income.

What Would You Expect to Happen to the Price of a Share