Stock prices usually drop by an amount nearly equal to the amount of the dividend on

Question

Quizplus · Accepted Answer

The ex-dividend date is the date on which a stock starts trading without the value of its next dividend payment. When a stock goes ex-dividend, its price typically drops by roughly the amount of the dividend. Therefore, C is the correct answer. The announcement date, record date, and payment date do not have a direct impact on the stock price.

Stock Prices Usually Drop by an Amount Nearly Equal to the Amount