shorting stock

[frank99]

If I short stock xyz, will I be charged dividends when everyone else receives them if they long the stock?

I've never shorted stock before, so I hope someone can help.

Thanks,

Frank

 

[ak15]

No

 

[lilboy716]

yes... you'll be paying the dividend to the nice people you sold these borrowed stocks certificates to.

 

[zdreg]

Quote from ak15:

No

how did you you manage to come up with the wrong answer and have been probably trading from at least 2003?

 

[ak15]

Quote from zdreg:

how did you you manage to come up with the wrong answer and have been probably trading from at least 2003?

Figure it out.

 

[zdreg]

Quote from ak15:

Figure it out.

your response definitely confirmed my thoughts.

 

[ak15]

You have thoughts to confirm?

 

[YoungOne]

http://www.fool.com/personal-finance/taxes/2002/12/06/dividends-paid-on-short-sales.aspx

 

[frank99]

Thanks for the replies. It looks like you will be charged for the dividend if shorting a stock.


Frank

 

[demoship]

Of course you have to pay the dividend, otherwise that'd be 1 massive scam. Find a dividend paying stock, short it at closing, buy it back at opening when it gaps down due to the divvie being paid.