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Community: Investing Wiki

Term Of The Hour

stock price calculation: Original post by D. Laverne O'Neal of Demand Media The day a dividend is approved by a corporation's board of directors, the amount of the dividend becomes a liability in accounting terms. At the end of the trading day, the stock price is adjusted to account for the dividend payout, and the new price is termed the ex-dividend price. The ex-dividend price is the closing stock price reduced by the…

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