📉 Why Do Stock Futures Trade at a Discount Before Dividends or Bonuses? 💡

Ever noticed futures trading below the spot price before a dividend or bonus is declared? Here’s why 👇 🎯 1. Expected Dividend Payout Futures don’t qualify for dividends. So if a stock is about to pay out, its future price adjusts downward to reflect the cash leaving the company. 🧾 Example: Stock Spot Price = ₹100 Expected Dividend = ₹5 Futures Price ≈ ₹95 🎁 2. Bonus Issue Effect A bonus increases the number of shares but reduces the price per share. Futures adjust early to this change, often trading at a discount before the bonus record date. 📌 Bottom Line: Discount = Market adjusting for cash outflows or share dilution ahead of time.