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Market makers drop the bid/ask by the ex-dividend amount immediately after it is announced, or arbitrageurs short the stock when the ex-dividend amount is annou
by quickthrowman 3y ago
Market makers drop the bid/ask by the ex-dividend amount immediately after it is announced, or arbitrageurs short the stock when the ex-dividend amount is announced and then they cover their short once the ‘overvalued’ stock they sold is back at fair value.