Timeline for Please explain the relationship between dividend amount, stock price, and option value?

8 events

when toggle format	what		by	license	comment
Apr 26, 2013 at 1:27	comment	added	Eugene S		Isn't the price which is getting affected by the dividends payment is only the Adjusted Close? As far as I understand it, the rest of the prices should remain unchanged..
Mar 11, 2013 at 19:26	comment	added	JB King		Another detail to remember is that some companies like REITs may give out large dividends due to their tax structure and thus it is a matter of how the company is structured that determines the size of dividends coming out.
Aug 17, 2011 at 14:04	vote	accept	Jer
May 4, 2011 at 18:06	history	edited	Havoc P	CC BY-SA 3.0	Discuss what happens with options
May 4, 2011 at 17:56	comment	added	Havoc P		One detail is that the decision on whether to issue a dividend or retain earnings to reinvest should be based on whether the company thinks it can earn more money on reinvested capital than stockholders could earn. If a company can't do better than an index fund, ideally they pay a dividend and stockholders can invest it in an index fund. If they can do better and have a good opportunity, then ideally they keep the money and invest it somehow on stockholders' behalf. Unfortunately, often companies aren't rational about this decision.
May 4, 2011 at 16:37	history	edited	Mike Piche	CC BY-SA 3.0	added 1715 characters in body; edited body
May 4, 2011 at 16:26	history	edited	Mike Piche	CC BY-SA 3.0	added 765 characters in body
May 4, 2011 at 16:12	history	answered	Mike Piche	CC BY-SA 3.0