Share

Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Divya (Studeny) (379 Points)

01 June 2014

Plz Justify... Does d Announcement of Dividend Drops Share prize??

Reply
Follow
Share

4 Replies

(Guest)

na... announcement doesnt....

The date which is locked for divident... share price will be down on that day.....

Share market Expert miss Divya.....

Upgrade to CAclubindia Pro. Subscribe Now!

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 03 June 2014

In theoretical world it does not affect the price of share howeever in practical its does...

RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
Replied 14 June 2014

The share price rates are supposed to go up if there is a declaration(announcement) of dividend ......

and the share price is most likely to go down when the dividend goes ex.

lets say STC India whose share price is Rs. 215 declares a dividend of rs. 20 per share on 10th jun. the day when the company declares the dividend the price will go up(mostly it happens), it doesnt matter by how much .

and the ex-date for dividend is 5th july. ex-date is date when a dividend goes ex. It means the person who are holding share on previous day of Ex date will entitled to recieve dividend.So the person who have shares on 4th july shall be entitiled to get dividend.

so declaration doesnt result in decrease in price rather it increases price most often.

and the share price goes down when the dividend goes ex.

i think this might help u.