Payment In Lieu Of Dividend

M

moonwalker

hi

last month I had on my IB account the following line

2004-03-12 LLY(532457108) PAYMENT IN LIEU OF DIVIDEND -35.50

I understand that when I short a stock that I have to pay the dividend, but I did not short LLY last month.

So for what I have to pay 35.50 ???? what is LIEU of DIVIDEND?

Thanks for help
 
That looks like a credit to me. What did IB say when you called them?
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credit????
Just to make it clear, I do not use margin at all. I only trade cash.

I didn't call them yet as I always get the better answers for all IB things out of this board.

When I call IB half the time the helpdesk has no idea what I'm talking about. ;)

If somebody knows I would appreciate the help, elsewhere I will call tomorrow
 
Quote from moonwalker:

hi

last month I had on my IB account the following line

2004-03-12 LLY(532457108) PAYMENT IN LIEU OF DIVIDEND -35.50

I understand that when I short a stock that I have to pay the dividend, but I did not short LLY last month.

So for what I have to pay 35.50 ???? what is LIEU of DIVIDEND?

Thanks for help
More...

If you are providing all the relevant details, then it is a mistake on IB's part. You need to continually pressure them til they fix it. Write an e-mail a day til somebody gets so annoyed with you that something happens. This technique works for me.
 
LLY went EX_DIV on FEB. 11th.

If you got a "payment in Lieu of div." for -35.50, that means you were short from FEB 10th to the 11th (or later) & you owe someone a div.. I'd guess you were short exactly 100 shares over the ex-div.

I get these all the time-I've got the specifics down pretty good over the years .

I'm also at IB.
 
shame on me mister moonwalker !!!!!

sorry guys the thing is: I wasn't shorting LLY in march when IB billed me but I was shorting LLY in february when LLY payed dividends.

11-Feb-04 $ 0.36 Cash Dividend

So I don't know why I pay a month later but it seems to be all right.

thanks anyway.


moonwalker
 
Oh yeah........Why does it show up in march?

--Because the pay date for this dividend was 3/10/04.

I guarantee you if you go to your FEB. 10th statement at IB, you'll see you were short LLY overnight that night.

--Cheers, hope this helps!
 
Oh yeah........Why does it show up in march?

--Because the pay date for this dividend was 3/10/04.

I guarantee you if you go to your FEB. 10th statement at IB, you'll see you were short LLY overnight that night.

--Cheers, hope this helps!
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Yea right i was short from 8th till 13th. I didn't know the pay date thing yet.

Thanks for the info and the help.
 
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