Suppose you have common stock of TigerCorp amounting to $100 million. At the end of the year, TigerCorp declares a dividend paid to common stock holders. The effect of the dividend on your investment would be:

Question

Quizplus · Accepted Answer

Your investment would decrease in value.
A dividend is the partial liquidation of the company with respect to a stock holder, not an option holder.

Suppose You Have Common Stock of TigerCorp Amounting to $100