InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,477.90
(
0.16%
)
US TECH 100
19,126.00
(
-0.26%
)
Dow Jones
39,127.80
(
0.04%
)
Brent Oil
84.47
(
0.34%
)
Bitcoin
60,762.81
(
-1.70%
)
Post# of 169274
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

matrix

Send PM Follow Ignore
Followers 30
Posts 4021
Boards Moderated 0
Alias Born 08/01/2004

matrix

Re: samaelrocks post# 141398

Tuesday, 01/02/2007 10:58:10 AM

Tuesday, January 02, 2007 10:58:10 AM

Post# of 169274
The company pays the stock divvy to the last buyer in the chain of borrowing/shorting transactions. Anyone short as of the ex-dividend date owes the divvy to the original owner whose shares were borrowed. A shorter can cover this by buying or shorting the other stock otherwise his broker will charge his account for the amount.

Crappy pennies like to issue stock divvies in private entities. These securities have no market value. So, a shorter's cost in this case is zero.

-----
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett

Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up