If there is no tax on dividends, then the price of a share will not drop on the ex-dividend date.

Name: If there is no tax on dividends, then the price of a share will not drop on the ex-dividend date.
Brand: Quizplus
Rating: 5.0 (37 reviews)

Question

Quizplus · Accepted Answer

The price of a share will typically drop on the ex-dividend date, regardless of whether there is a tax on dividends or not. This is because the dividend payment reduces the value of the company's assets and cash holdings, leading to a corresponding decrease in share price.

If There Is No Tax on Dividends, Then the Price