text: why do stocks drop after the x-dividend date?\n\nBecause it is money that the company is giving away so the companies value is being decrease by that much. \n\nIf a company is worth $1000 and has 10 shares of stock trading at $100/share.  If the company has a $1 divend the company will then be worth $990 and the 10 shares are now at $99/share.