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

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

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The ex-dividend date is the first day a stock trades without the dividend, meaning investors who buy the stock on or after this date are not entitled to the upcoming dividend. As a result, the stock price usually drops by an amount nearly equal to the dividend on this date.

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