The impact of ex-dividend, on the stock price is shown in the ex-rights before and after the ex-rights, ex-rights and ex-dividend itself shows that the company's performance is very good, because it is easy to get the funds to pursue.
On the one hand, before the performance report came out, the performance is good, may trigger the chase before the ex-rights, on the other hand, after the ex-rights, a stock is likely to be from the high-priced stock into a low-priced stock, in line with the shareholders like to buy low-priced shares of the psychological ideas, and the shareholders also have the stock can be back to the original price of the expectations.
Because after the ex-rights, there is often a filler market. There is no need to do any preparation before the ex-rights and ex-dividend. The big drop after ex-rights is because of the favorable cash. If the ex-rights before the rise, ex-rights continue to rise, the main force of the stock involved in the very deep, the use of momentum to attract eyeballs, continue to pull up the opportunity to ship.
Generally, listed companies to implement a high proportion of stock delivery and transfer, will make the ex-rights share price greatly reduced, but in fact, due to the number of shares increased, investors did not suffer losses. Ex-rights, ex-dividend for shareholders the impact is neutral. On the one hand, ex-rights and ex-dividends can more accurately reflect the value of the listed company's share price, and on the other hand, it can also facilitate shareholders to adjust the cost of ownership and analyze the changes in profit and loss.
However, a listed company can improve liquidity by expanding its total share capital through high percentage distribution and other means, and pulling down the share price through ex-rights and ex-dividend. Listed companies with good stock liquidity tend to be easily favored by institutional investors if they have excellent performance, which is an important factor in the implementation of directed rights issue and the possible subsequent implementation of financing and securities financing business.
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