why does the price of the stock fall when the dividends are anounced? e.g. let’s say rs.5 dividend per share is announced by company X. Then it is said that the stock price would fall by Rs. 5? What is the rationale bebhind this?
And if this is the case, as a shareholder, what advantage would i get? i am getting a dividend of Rs.5 per share but at the same time the value of the share is also going down by Rs. 5. So what is the point here?