Veltex Corporation (VLXC)

[hapslap]

Give me a break! making the lender whole is part of normal brokerage operations (you make it sound like a risky business). the cash dividend is, for all intents and purposes, paid to the owner of the shares and not the short seller who borrowed the shares (see below). mushroomman, you tell as many half- and quarter-truths as matin. hmm, maybe you're somehow related.




Some companies issue regular cash dividends to their shareholders (although not nearly as many companies pay dividends today as in years past). All shareholders, including the brokerages that have loaned out stock for short sales, expect these cash dividends. If a dividend-paying stock is sold short, the short-seller will be required to reimburse the brokerage for any dividends paid out during the short position holding period. In most cases, the dividend will be very small and inconsequential. But some stocks pay substantial dividends which may make the trade unprofitable. The brokerage will automatically debit from cash balances for dividend payments. Always note dividend rates and payment dates when analyzing a stock for short sale.