decrease in market value


This query is : Resolved 

(Querist)
21 March 2011 What is the reason for the reduction in market value of the share of any co. after it pays the dividend to share holders??????????

Kumar (Expert)
21 March 2011 When dividend is paid out, Bank balance of the Company comes down i.e. book value and networth of the company comes down and so the Market value of the share also comes down
In Market value function, book value is a major variable.

07 August 2011 due to reduction in book value price go down and also before divided rec stock having same buffer value due to divided news so after divided that buffer value also goes to nil.


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