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Divya

Divya (Querist)
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01 June 2014 Plz Justify... Does d Announcement of Dividend Drops Share prize??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 June 2014 generally no. it results in increase in share price. however, if the dividend declared is less than the expectations of the investors, price can fall too.

Guest

Guest (Expert)

02 June 2014 Nikhil Sir, Can i ask something here...

The day which is looked for dividend distribution, us din share prices down aati hai na...

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 June 2014 on ex-dividend date because the people who buy after that date dont receive the dividend. So the marginal utility of price increase becomes negative and prices fall.

Guest

Guest (Expert)

02 June 2014 hmmm...thanks... thats what i wanted to know because i had seen that on ex-dividend date share prices comes down...