I am a bit confused on below paragraph from the following link of Dividend Section “Corporate actions and impact on stock prices – Varsity by Zerodha”
When the stock goes ex-dividend, usually the stock drops to the extent of dividends paid. For example, if ITC (trading at Rs. 335) has declared a dividend of Rs.5. On ex-date, the stock price will drop to the extent of dividend paid, and as in this case, the price of ITC will drop down to Rs.330. The reason for this price drop is because the amount paid out no longer belongs to the company.
from the above example, the ITC should open on an ex-dividend date with Rs.330. is my understanding is right. if Yes, then, I have checked few Dividend stocks on their Ex-Dividend Date, the price is not discounted with the Dividend amount.
How to check whether the dividend amount is discounted from stock price? ( I understand it’s a process and there will not be any miss. asking for my clarity)
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