dividend is priced in the value of the share ... if a dividend of 2% is paid to stock holders, the price usually drops by those 2% on ex-date ; obviously subsequent buyers don't get the dividend, hence they want to pay less for the shares ...
Yes the downward correction for the fact the dividend is no longer available to a buyer of the shares is mechanical. These days it's nigh on impossible to arbitrage the ex-div date. Tim.
Please make. Video on how to buy shares, where can you buy them from , what do all those numbers mean whenever I companies . I'm 15 and trying to learn about the stock market . Thank you
Hey Tim Happy birthday many blessing, You think it will be possible for your team to upload the old videos (2011 and before videos) to iTunes podcast. I think the fans may like that too. Thanks for all your hard work, the best professor by far.
Happy Birthday Tim! Your vids are great! I have a question about the ex-divi share price. The price is just arbitrarily lowered according to the dividend payout? Its not natural market speculation that these shares are worth less right now? So the stock market just chops off a bit of the price and then adds it on again afterwards?
Hello Tim, I'm 15 and want to get a head-start on getting to know the world of finance and economics. Can you make a video explaining CDO and CDS. I know the basics of what they are but your videos are incredibly informative and easy to understand so would you mind making a video about them? Thanks.
Please make sure your audio recording is correct, we are struggling to here your voice properly, clearly, there is big raise and fall of voice and recording volume.
However late, happy birthday. Could you explain the concept where one can avoid tax by playing around with this dates?I know such a phenomenon exists just that I can't get my head around it.
Thank you, but who "prices" it? Normally its we investors (or speculators) so why is it so special to note this price drop as we assume investors are always calculating the stock price to what is appropriate. Maybe its just readjustment for over pricing so close to the dividend date. Many things should be priced into a stock, but many times they are just ignored because of speculation of future earnings, so 2% here and there is a wash over the longer term.
TIM proves to the UNIVERSE (cause Elon's cousins are out there in the space), that a COMPASSIONATE trainer can influence even first-time visiting audiences.
