What would you expect to happen to the price of a share of stock on the day it goes ex-dividend? The price should:

Question

Quizplus · Accepted Answer

When a stock goes ex-dividend, it means the company has declared a dividend, but the dividend has not yet been paid out. On the ex-dividend date, the stock price is adjusted downward by the amount of the dividend to account for the fact that new buyers of the stock will not be entitled to the dividend. Therefore, the price should decrease by the amount of the dividend.

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