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Re: berhead post# 5777

Friday, 12/17/2010 4:55:40 AM

Friday, December 17, 2010 4:55:40 AM

Post# of 55136
Shorts Must Pay Any & All Dividends




Perhaps this could force some short covering? If a mkt maker is naked short, the brokerage firm will need to settle up with DTC.



With FINRA now approving the 10% Dividend, it will happen. Whether the Dividend forces any short covering remains to be seen. But it is a fact, when you short a stock, you have to pay any Dividends. BTDG is in effect paying a 10% Dividend which any shorts must cover. They can moan, cry and bellyache all they want, there is no way around it. Their Broker will simply deduct said amount from their account.


http://seekingalpha.com/article/25104-dividend-yield-capitalizing-on-a-short-squeeze



BTDG