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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Chapter 17.4, Problem 2CC

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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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