Dividends on short positions

Discussion in 'Stocks' started by Ialwayslearn, Aug 22, 2008.

  1. If you have an open short position going into a dividend payment by the company you are short, is that dividend somehow accounted for in your short position by adjusting the price you paid or debiting your account, etc.?

    Or are you entitled to the dividend also? (I don't believe so)

    Consider this a position you have had for several months.

  2. Your account will be debited for the amount of the dividend the day it goes ex-dividend.
  3. You pay the dividend to the guy you borrowed it from. Which is rather interesting if the stock is an FTD, or a fake borrow. They are collecting dividends for stocks they never borrowed, but told you you did. LOL. What a scam.
  4. Thanks guys!