Final answer:
When a stock goes ex-dividend, its price is expected to drop by approximately the amount of the dividend as the value of the dividend is no longer reflected in the stock price.
Step-by-step explanation:
On the day a stock goes ex-dividend, you would expect the price of the share to drop. This happens because the value of the dividend is no longer included in the stock price, as the upcoming dividend payment is now due to be paid to the shareholders on record before the ex-dividend date. The price typically drops by an amount roughly equal to the dividend being paid, although market conditions can influence the actual price change.