How do dividends work for mutual funds?

Posted by admin on April 3rd, 2010

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Posted in Dividends Tags: Dividends, fidelity, price drop, stock

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One Response to “How do dividends work for mutual funds?”

1. Yada Yada Yada says:

   April 3, 2010 at 2:44 am

   The fund (or company) only has so much money. So if they pay out money in the form of a dividend, then the remaining value of the fund or stock is less, thus the adjustment (and hence the term exdividend).

   Hope that helps!