On the Date of Record,the Stock Price Drop Related to the Dividend

question 6

Multiple Choice

On the date of record,the stock price drop related to the dividend is

• A)a full adjustment for the dividend payment.
• B)a partial adjustment for the dividend payment because of the tax effect.
• C)zero because the adjustment occurs on the ex-dividend date.
• D)zero because the adjustment occurs on the payment date.
• E)generally greater than the dividend amount.

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Definitions:

Rational-emotive Therapy

A form of psychotherapy that identifies and challenges irrational beliefs, encouraging healthier thinking and behavior patterns.

Self-defeating Beliefs

Thoughts and beliefs that negatively affect a person's confidence, goals, or actions, often leading to undermining their own success.

Behavioral

Pertaining to the actions or responses of individuals or groups in relation to their environment or stimuli.

Psychoanalytic

Pertaining to psychoanalysis, a method of therapy and theory of personality developed by Freud that emphasizes unconscious motives and conflicts.