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Re: mugs57 post# 14926

Thursday, 11/07/2013 1:06:05 PM

Thursday, November 07, 2013 1:06:05 PM

Post# of 30990
I have just sent that info and the info below to Talhia. However, this is not the first time it has been submitted to the company.

Here is a little supporting information (with cites) pertaining to my post from earlier today...

Because that original investor who was kind enough to lend you the stock is no longer an actual shareholder with the company, the short seller is required to make up for any benefits the investor would have received had he or she actually still owned the stock.

In other words, if a company pays a dividend to shareholders, the second investor who bought the shares from the short seller would get the dividend check from the company. But because the original investor is no longer a shareholder of record (because the second investor owns those shares now), then the short seller must pay the dividend out of his or her own pocket.
Quoted from Investopedia

A whole host of items can form the basis for your company’s next property dividend:
• bonds issued by the government;
• real property;
• the distributing corporation’s bonds;
• another corporation’s bonds;
• assumption of the indebtedness to a third party of a shareholder;
transferable vouchers enabling shareholders to receive company products or corporate services discounts;

Quoted from ChoChan.com

Definition of 'Property Dividend'
An alternative to cash or stock dividends. A property dividend can either include shares of a subsidiary company or physical assets such as inventories that the company holds. The dividend is recorded at the market value of the asset provided. Quoted from Investopedia
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