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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: mst2000 who wrote (909)	8/30/1999 12:10:00 PM
From: Gerald Walls	Respond to of 1438

Pardon me, but when the dividend is paid, it is only paid on 10,000 shares - someone does not get it it (the company cannot be made to pay dividends on more shares than it has actually issued -- I believe the shorter is the one who pays the dividend declared by the company to the person who originally he sold his borrowed stock to, while the lender of the share gets paid directly from the company). But I guess the sale of the "borrowed stock" creates the illusion that there is more supply. This is correct. But there is no "illusion" of an increased supply. As long as the short stays short there are more shares available for trading.