Janice, then please explain how a dividend is distributed to a stock with a short position?
When a stock is trading with shorts in the float, you have more shares in the float than are issued by the company. Clearly, simply because the T/A distributes the stock to all shareholders of record, doesn't mean there aren't shortfalls.
The shorts themselves need to cover the dividend in addition to the shorted share, which isn't a problem for them if a large amount of stock is held in streetname. They can just post a marker in the person's account. In the case of someone who owns shorted shares, that electronic marker represents an IOU.
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