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To: john carr who wrote (1796)	6/12/1998 10:02:00 AM
From: Harold Finstad	Read Replies (1) \| Respond to of 4230

John, when a stock goes ex-dividend. The market price is adjusted downward automatically to reflect the decrease in value that the dividend represents. In this case it would be $.10. This holds true whether you are dealing with IBM or TGSK. I am sure your broker will back me on that. Now that doesn't mean that the market must open down .10. It just means that assuming an opening market was going to open flat (all MM's were going to maintain their closing bid-offer into the opening) then the market ex-dividend would see the bid-offer automatically reduced by the amount of the dividend. On the other hand the finally opening is really determined by the MM's. It is usually easier to see this in listed stocks. For example lets say stock ABC closed the night before at $10. The company ex's a $.50 cent dividend. A flat opening the next morning would be $9.50. If the stock opens at $10 then the Up-Down indicator would show the stock Up 1/2. Hope this makes it clearer.