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To: Patrick Slevin who wrote (57552)	11/16/1998 4:36:00 PM
From: HairBall	Read Replies (1) \| Respond to of 58727

Patrick: The answer is yes, you are responsible for dividend payment. Theoretically no big deal, as the specialists are supposed to "mark down" the stock on the Open of Ex-Dividend to reflect the payout. So exactly how does that work if you hold a short position through a dividend distribution? The short sell gets marked down or the buy to cover gets marked up or is there just a separate charge added to your short sell basis? In addition, the original question was... 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, will 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? Do you know the answer to that one? TIA Regards, LG