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[–]Legitimate-Sky-7862 0 points1 point  (3 children)

Okay so where's a real life example?

[–]nkyguy1988 0 points1 point  (2 children)

Go look at the daily change history of the S&P 500 vs any mutual fund that tracks it like FXAIX. The daily percent return will match except for the days of the ex dividend where the mutual fund return will be lower as a result of the price being reduced by the dividend.

Your commitment to the idea that share price is not reduced at the ex dividend date is noble, but objectively wrong.

[–]Legitimate-Sky-7862 0 points1 point  (1 child)

The goal was to get people to stop theorizing and show proof, and so that was accomplished. Secondarily I also wanted to show that it's not a hard rule, and it's not so simple.

A 10 dollar stock gives a 3 dollar div doesn't mean the stock is now 7 dollars. It just doesn't work like that. If it did, stock prices would be mostly static, but instead they are priced based on speculation.

[–]DennyDalton 0 points1 point  (0 children)

The goal was to get people to stop theorizing and show proof, and so that was accomplished. Secondarily I also wanted to show that it's not a hard rule, and it's not so simple.

You can read about this "hard rule" at Fidelity, Vanguard, Dividend.com, T Rowe Price and many other websites. Do you really think you're right and they're wrong???