Friday, October 15, 2010 11:50:54 AM
Taken from http://www.fool.com/FoolFAQ/FoolFAQ0033.htm
OK, I understand the potential benefits and risks of shorting, except for one thing. If the stock I've shorted pays a dividend, am I liable for that dividend?
Yes. If you are short as of the ex-dividend date, you are liable to pay the dividend to the person whose shares you have borrowed to make your short sale. I must say, however, that if you are correct in your judgment to sell the issue short, your profits achieved thereby will certainly outweigh the small dollar amount of the dividend payout.
I think the fact that the PPS will rise, is what our CEO is talking about in the PR...that a "shorter" would be crazy to short and lose on ENTI and then still have to repay the divy to their brokerage.
Briggsy,
GO ENTI!!!
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