yes, but there is no evidence that ALL are not paying attention.
So we try.
Remember that even in the satirical thread, as Hedge pointed out, you tried to give out some sane advice once or twice. It's part of our addiction.
"I must go now and sacrifice a gnu calf to the god of clarity."
By the way, where do you get your gnu calves?
They're only £2.99 each at this fine site: http://www.toyandgift.co.uk/acatalog/Gnu_Calf.html
sorry for my lack of clarity. when I said "they bid for it with that information in mind", I was referring to traders bidding for the WARRANTS, not the stock.
I must go now and sacrifice a gnu calf to the god of clarity.
indeed, his last line may be understandable to checking account owners everywhere:
"if you withdraw $100 from the $1000 in your checking account, you don't have $1100, you still have $1000 ($900 in your bank and $100 in your hand)"
Let me help you out. The warrants are presently trading [on a "when-issued basis", look it up]
The people who are buying them know that the stock goes ex-div tomorrow, so they are aware that the stock price will surely drop by about half the value of the warrant. [because each share gets .533 warrant]. Simply put, the traders are not stupid and since they KNOW the price of the stock falls tomorrow, they bid for it with that information in mind.
As a result, while the stock price will fall tomorrow, the warrant price is unlikely to fall. Thus the truth of the matter is that tomorrow's stock+half/warrant is likely to be about what the stock price alone is at end of today.