Re:S&P Dow Jones Indices to launch cryptocurrency indexes in...
by andrewmcwatters on Thursday December 03, 2020 @06:10PM
(#25296683)
I should have been more clear in that first line. I don’t understand where the concept of a valuation of a company dropping 1:1 proportionally with its dividend payment came from.
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Re:S&P Dow Jones Indices to launch cryptocurrency indexes in...
by dmoy on Thursday December 03, 2020 @06:34PM
(#25296960)
Because it's roughly what happens, absent other factors on the ex div day.
https://www.investopedia.com/articles/investing/091015/how-d...
https://finance.zacks.com/stock-price-change-dividend-paid-3...
It's not 100% true, but it's a fair bit better approximation than the other end of the spectrum which is roughly "dividends create free money out of thin air".