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Investment Analysis Clubs / The BMW Method

URL:  http://boards.fool.com/mike-great-looks-like-youve-been-busy-too-25278085.aspx

Subject:  Re: Charts -- with Yahoo data Date:  3/12/2007  11:00 PM
Author:  GrahamInv Number:  21890 of 42240

Mike:

Great! Looks like you've been busy too.

According to Investopedia:

"When distributions are made, the adjusted closing price calculations are quite simple. For cash dividends, the value of the dividend is deducted from the last closing sale price of the stock. For example, let's assume that the closing price for one share of XYZ Corp. is $20 on Thursday. After close on Thursday, XYZ Corp. announces a dividend distribution of $1.50 per share. The adjusted closing price for the stock would then be $18.50 ($20-$1.50)."

I'm not sure of a good reason for doing this. It kind of makes for an artificial closing price.

Bosco.
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