A stock that you know is held by long term individual investors paid a large one time dividend You notice that the price drop on the ex dividend date is about the size of the dividend payment You find this relationship puzzling given the tax disadvantage of dividends Explain how the dividend capture theory might account for this behavior

Question: A stock that you know is held by long-term individual investors paid a large one-time dividend. You notice that the price drop on the ex-dividend

A stock that you know is held by long-term individual investors paid a large one-time You notice that the price drop on the ex-dividend date is about the size of the payment. You find this relationship puzzling given the tax disadvantage of dividends. Explain how the dividend-capture theory might account for this behavior?

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