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Technology Stocks : USRX

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To: KYA27 who wrote (16531)3/26/1997 6:12:00 AM
From: David Pletcher   of 18024
 
Could someone please tell me what happens when a company declares a dividend in their stock and there is a very large short position

The shorts pay the dividend to the owner of the stock. Discounting any secondary effects and tax consequences, it is revenue-neutral for the short because the stock drops by the dividend amount. No reason for the SEC to get involved.
-- David Pletcher
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