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Replies to #8773 on NEWBIES BOARD

SmallCapValueInvestor

03/12/13 12:23 PM

#8774 RE: mayvid #8773

Edit: Never mind I miss understood

Garyst

03/12/13 12:26 PM

#8775 RE: mayvid #8773

mayvid, yes you are correct in your thinking. Companies will do that in an attempt to draw interest to their stock thus raising the pps higher prior to the Dividend being issued. Once issued though many times the pps goes right back down as many are trying to sell their shares and take advantage of that gain they just made with the Dividend.