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Adjusting volume for dividends in UA

Posted: Sat Apr 05, 2014 10:56 am
by sunyata
In UA, there is an option to "Adjust volume for dividends and capital gains." UA support staff say that this option "supposedly illustrates the impact of dividends and capital gains on daily trading volume."

They say it is calculated by dividing the dividends into the Volume.

v =Volume/Accumulated Dividends.

I've never heard of this. How do cash dividends affect the volume of a stock? Perhaps this calculation is only for stock dividends, but they do not specify. Anybody know?