SIE: Adjustments To Open Quotes On The Ex-date

Adjustments to Open Quotes on the Ex-date

In the case of either cash or stock dividends at market opening on the ex-date, the market reduces the previous day’s stock price by the per-share value of the dividend. This adjustment occurs on the ex-date because the ex-date is the first day a stock trades without the right to the dividend (“ex-dividend”). Investors purchasing shares on or after the ex-date do not have a claim to the dividend, so the exchange adjusts the price downward to reflect this fact. The quote will not be reduced if the