0

Let us say I am short a stock ABC. I buy the stock back on the ex dividend date. Now, when I buy the stock, I have to return it to the original lender that loaned me the stock,correct?

If that is the case, after buying the stock, do I get to keep the dividend? Or the dividend goes to the original owner? My guess is the latter.

3

You went from potentially owing the dividend to being neutral, not owing. Not getting. Your position was -100, then 0, not positive. The guy you borrowed from gets her dividend regardless, if not from you then from the company paying its dividend.

  • 1
    Actually if he buys back stock on ex-dividend date he will still have to pay the dividend to the person borrowed off. – Victor Mar 19 '15 at 8:58
  • 2
    Funny, title for question says before and body of question, on. Of course you are right. – JoeTaxpayer Mar 19 '15 at 9:36

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.