Why Your Stock Dropped on Dividend Day

Your stock dropped overnight. Who sold? Nobody. Dummy picture: the cash fell out of the ticket. Not a crash. On the ex-dividend day the board marks the price down by about the dividend — a $1 payout, about a $1 dip. The new buyer does not get this cash. The old holder does. Same pile: ticket down, pocket up (when the bag lands). The drop can be today. The cash can land days later. Fox says it crashed, or that you can grab free money by buying the day before. The drop eats the “free.” Homework: count the ticket plus the cash. Not a sell. Not a chase. Not financial advice. Educational and entertainment only. Sources Investopedia — Ex-Dividend Date; record date vs ex-date FINRA Rule 11140 SEC — T+1 settlement (May 28, 2024) NYSE / Nasdaq — ex-date price adjustment of the previous close Music Background: tease bed from Mixkit catalog ("Just Kidding", royalty-free).