Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I read that while holding a shorted stock, you must pay any divendends to the broker you sold it to. I don't quite understand this. It seems like a company is paying out a dividend for every share that's out there, and that if you sell short to a broker, the dividend amount would go to the buyer (broker) from the company, not from the short holder. Can someone clear this up for me? Thanks.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.