Sid, when a stock goes "ex-dividend", its shareholders receive a...

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    Sid, when a stock goes "ex-dividend", its shareholders receive a payment (dividend) from the company and the share price normally adjusts to reflect the change in the value of the company after making the payment. (I say "normally" because nothing is guaranteed in the stock market.)

    For more information, look at "dividend" or "ex-dividend" in Wikipedia.
 
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