Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 17.4, Problem 2CC
Summary Introduction

To discuss: The implication of dividend capture theory about the trade volume in a stock around the day of ex-dividend.

Introduction:

Dividend capture theory is the strategy of purchasing the stocks preceding the ex-dividend date. This is to capture the dividends and selling the stocks, once the dividend is paid.

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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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