> It's just that dividends reduce the price of the stock directly Dividends reduce the price of the stock directly because there is an active market. Once the

> It's just that dividends reduce the price of the stock directly Dividends reduce the price of the stock directly because there is an active market. Once the dividend is paid out, the stock price is decreased by the dividend because this is what market makers are willing to pay now. Without any active market, paying out a dividend would not influence the price, because there are no market makers to begin with. This is of course absurd, so there will always be an active market.