In theory,when a stock begins to trade ex dividend,the price of the stock should drop by roughly the amount of the dividend.

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When a stock begins to trade ex dividend, it means that buyers of the stock are no longer entitled to receive the upcoming dividend payment. As a result, the demand for the stock may decrease, causing the price to drop. In order to compensate for the loss of the dividend, the market may adjust the stock price by roughly the amount of the dividend. Therefore, in theory, the price of the stock should drop by roughly the amount of the dividend when it begins to trade ex dividend.

In Theory,when a Stock Begins to Trade Ex Dividend,the Price