What Would You Expect to Happen to the Price of a Share

question 18

Multiple Choice

What would you expect to happen to the price of a share of stock on the day it goes ex-dividend? The price should:

• A)Increase by the amount of the dividend
• B)Decrease by the amount of the dividend
• C)Decrease by one-half the amount of the dividend
• D)Remain constant

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Definitions:

Low Frequency

Pertains to waves, such as sound or electromagnetic waves, that have a relatively low rate of oscillation or cycles per second.

Place Theory

A theory in psychology that proposes the perception of sound depends on where each component frequency produces vibrations along the basilar membrane of the inner ear.

High-Pitched Sounds

Sounds that have a high frequency, typically perceived as "shrill" by the human ear.

Hair Cells

Sensory cells located in the inner ear, vital for the conversion of sound waves into electrical signals for hearing and helping in the maintenance of balance.