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dividends

Financial Literacy · July 9, 2018

Why Do Share Prices Drop After a Dividend Payment?

Why do share prices drop after a dividend payment?

Share prices often drop by the amount the dividends are paid. Why does this happen?  The answer is quite logical; when the company pays out the dividend, the value of the company is reduced by the amount of the total payout. In other words, the amount paid out in dividends no longer belongs to the […]

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