TA-Quotes Plus Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : TA-Quotes Plus

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Debra Orlow who wrote (7815)	11/16/1998 6:25:00 PM
From: unixgeek	of 11149

Say that I am short a stock position. Dividend date is Nov 16th, ex-dividend Nov 17th. Dividend is in form of a distribution of shares in a new baby company at a rate of 1/10th of a share for each parent company share. On which date is the short position liable for that distribution? If I am currently short 1000 shares, ill I now be short 900/100 in two different companies? Is there a time frame that I must be short in order to be liable? Am I asking too many questions? I'll take a stab at this, though I am not, nor licensed to be, a broker. I don't even play one on TV. So... ignore me and go ask someone who is. :-) As I understand such things, since you are short an issue, you are responsible for paying the dividend to the "borrowee" of the issue. If the dividend is stock, you must come up with it. I don't believe your position (short 1000 shares XYZ) changes at all. The liability is incurred on record date.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next