Debited for Dividend while short...

Discussion in 'Trading' started by BadCo, Feb 16, 2009.

  1. BadCo

    BadCo

    I was short AT&T for a few months and just noticed that my account was debited for the .41 quarterly dividend. I don't have a lot of experience on the short side. Is this correct, that the short seller is liable for the stock's dividend payment?

    tx
     
  2. pneuma

    pneuma

    yep
     
  3. yes thats correct. you sold it so you owe the owner the dividend
     
  4. BadCo

    BadCo

    thanks

    Ouch:(

    Can I write it off against dividends received?
     
  5. Yes, just like when you receive a dividend it is considered income, when you are short and it is taken from you it is a loss/payment.