Sulja Bros. Building Supplies, Ltd (SLJB)

[MHS]

joelotto answer plus question

Awake and if I understand your question then the dividend paid on a stock that was shorted goes to the legitimate owner. The one who went short will probably be seeing a stock he/she thought was going south go away from his as dividends give the price paid an automatic yield. The higher it goes the deeper in the red the shorter is and therefore buys back which hopefully pushes the sp higher.

Hope that answers your question. Now one from me.....

If MM's sell naked shares and a dividend is issued how does the clearing house know that a dividend should be paid to this non existent stock as it has never been registered. In reality if you go long on a stock that was sold by MM's without existing and you do not pay attention you may never realize a dividend was paid as there is no record of that stock as it is not real. Sounds convoluted but I would appreciate any corrections.

MHS