Does the stock price decrease in case of dividend?

General
1

Does the stock price decrease in the case of dividends? Can someone please explain with an example?
Thanks

2

Stock price is adjusted to the extent of Dividend Price when it opens on Ex-date.
Example : PFC has declared Rs 2.5 with exdate as 24th Nov. If PFC closes at 130 on 23rd Nov, then on 24th, it will open ex-dividend (means excluding dividend) i.e., 127.5.

Hope this clarifies

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3

generally yes. unless there is some other strong news. Just before dividend date usually it spike a little. after it goes ex-dividend it corrects.

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