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To: Spekulatius who wrote (201025)10/30/2002 8:16:42 AM
From: Bid Buster  Respond to of 436258
 
<What happens when you are short a stock or ETF on the day it pays its dividend?>

you get an account debit to pay the div on the amount of shares your short..lucky you -ng-



To: Spekulatius who wrote (201025)10/30/2002 9:11:17 PM
From: Knighty Tin  Read Replies (2) | Respond to of 436258
 
Spek, If you are short the stock on ex-dividend date, you have to pay the dividend to the person who loaned you the stock. However, the share price declines by the amount of the dividend, so it should be a non-event for a trader. For a long term shorter, though, the constant shipping out of dividends gets old fast. And, many times, not all things are equal.