Unless there is a specific rule or law with teeth to make them cover (and I haven't seen it yet) then why should they cover anything?
All of my divs are in my account restricted and I suspect it is legal. If it isn't, then my broker, SEC, DTC, and the MM's are committing a securities violation or a crime.
Why can't they just wait until the restricted shares are made free trading and then cover. That is what I would do (unless the law requires a "cover") because at that time it would be much less expensive to find the needed shares to cover any short position they have on the dividend stocks. I think the MM's know this and are making it look like they are running the divs up to cover.
You're right Zen, just a big game.
Willhub
"Life is tough. It's tougher if you're stupid." - John Wayne
