This refers to a common practice in the stock market wherein investors purchase a stock merely just to pocket the dividend that a company has declared for its stockholders. Such purchases usually happen just prior to the record date which is used to determine the eligibility of a stockholder to receive the dividend declared by a company. As expected, investors who chase dividends usually do not care to hold the stock after the record date has passed. So dividend stripping can cause the price of a stock to increase sharply just prior to the record date.
