facebookIf share prices drop on ex date, is it usually the case that the share prices recover (even to a small extent) after ex date? - Seedly

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Anonymous

26 May 2020

General Investing

If share prices drop on ex date, is it usually the case that the share prices recover (even to a small extent) after ex date?

If so, is it feasible to buy shares on ex date and then sell a few days later when the price increases to earn capital gain (assuming that transaction fees are already considered)?

Discussion (1)

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The share price is reduced by the amount of the dividend declared/share for that period. Unless you are buying a large number of shares, the gain after fees might not be very large.

The movement of the share price depends on the market sentiment. It is not for sure that the price will increase after a few days.

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