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loanranger

02/13/14 7:38 AM

#11066 RE: Remow #11058

I think that you have the right information and are entitled to be a little confused. For the heck of it I'm reproducing the SEC's explanation:
"Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).

If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."
http://www.sec.gov/answers/dividen.htm

I've highlighted the word seller because the context ("You" are the seller) suggests that they should have used "buyer" instead.

Please post any changes in your account that suggest that the dividend for the shares sold on 1/7 and 1/8 is being reversed. If it isn't, it's possible that the buyer ALSO got the dividend...if I was the buyer I'd make sure I got it....resulting in duplicate shares being issued. If that did happen, you can be sure that you weren't the only one it happened to...the Medbox common outstanding would then have more than doubled. Then you know what happens....certain people start to squawk about naked shorting and blaming anything that goes wrong on some imaginary evil-doers.

Let us know, please!


ps. If anyone knows.....What is the purpose of the record date in the issuance of a stock dividend if it doesn't actually establish who owns the dividend?