Do you still get the dividend if your short the shares?
- Thread starter bat1
- Start date
There are two levels at work
The holder of record â in other words the trader who bought your shorted (and borrowed) shares â will receive the paid out dividend
However the trader shorting had to borrow these shares in the first place â hence that trader must pay the lender of said shorted shares an amount commensurate to the dividend
====================
As for voting rights, when a trader agrees to lend their shares out, they also agree to relinquish their voting rights for the duration of their shares being shorted
The trader buying the shorted share(s) will be the holder of record⦠and has control of the voting rights for as long as they hold said shares (retaining the buyer of record status)
RN
The holder of record â in other words the trader who bought your shorted (and borrowed) shares â will receive the paid out dividend
However the trader shorting had to borrow these shares in the first place â hence that trader must pay the lender of said shorted shares an amount commensurate to the dividend
====================
As for voting rights, when a trader agrees to lend their shares out, they also agree to relinquish their voting rights for the duration of their shares being shorted
The trader buying the shorted share(s) will be the holder of record⦠and has control of the voting rights for as long as they hold said shares (retaining the buyer of record status)
RN
When a stock pays dividend, on ex dividend date it opens lower (the same amount as the paid dividend) so basically you will not lose or gain anything just because of dividend on that day. Say a stock is tarding at $60 and it pays $5 dividend. On ex dividend date, it opens at $55 while it shows no change. Some fools also buy the stock and sell it on ex dividend date which causes selling pressue on the stock while those who got dividend almost get nothing. Some investors sell the stock before ex dividend not to pay dividend tax.
Your question was a basic question but it does not mean that the other threads are any better. You might even make money if we have a market correction. Personally I short many dividend paying stocks and I pay the dividend and still make money.
Your question was a basic question but it does not mean that the other threads are any better. You might even make money if we have a market correction. Personally I short many dividend paying stocks and I pay the dividend and still make money.
You could check your theory out here. here's a few others that went ex diviend today.
http://www.thestreet.com/story/1192...k-wtr-sjm-whr-utx.html?puc=yahoo&cm_ven=YAHOO
