as a point of information.......i talked to a trading desk today, spoke with the compliance officer.....i specifically asked the question: 'do you guys have to cover a cash dividend, if you are carrying a short position?'
he answered: 'the clearing firm(whomever it is) will debit our account for the amount of the dividend, if we were short the stock, or if we had order flow of a short position'
or we could simply 'cover'
me: you would have to cover the entire short position or the amount of the dividend only? and the same would apply to a debit of your account? so its an 'accounting' of the amount
him: the amount of the dividend only
me: ok take a look at EIGH, the information is public now, they have announced a dividend of .005 or .10 depending on who you listen to, what would you do in a case like that, as a hypothetical?
him: it depends if we get a buyin notice
me: can you tell me what the official form is for the buyin notice
him: 204T
me: have you received that
him: no we have not
me: with a dividend of .005 is it possible you would not receive a buyin notice, a 204T
him: yes
me: thank you, do you mind if i call you back on friday of this week?
him: sure, thats fine!
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guys, i am not going to answer a lot of questions, i have no intention of sitting at my computer for the rest of the night, i do have a life........
the above may not be received too well, but its factual!! no, i am not going give you a phone number, or a name and i cant provide a link...... a simple thank you or kiss m/a will do just fine........lol
mikey
i have no position in EIGH at the present time.
