Payment In Lieu Of Dividend

Discussion in 'Retail Brokers' started by moonwalker, Apr 15, 2004.

  1. hi

    last month I had on my IB account the following line

    2004-03-12 LLY(532457108) PAYMENT IN LIEU OF DIVIDEND -35.50

    I understand that when I short a stock that I have to pay the dividend, but I did not short LLY last month.

    So for what I have to pay 35.50 ???? what is LIEU of DIVIDEND?

    Thanks for help
  2. gms


    That looks like a credit to me. What did IB say when you called them?
  3. credit????
    Just to make it clear, I do not use margin at all. I only trade cash.

    I didn't call them yet as I always get the better answers for all IB things out of this board.

    When I call IB half the time the helpdesk has no idea what I'm talking about. ;)

    If somebody knows I would appreciate the help, elsewhere I will call tomorrow
  4. gms


    Sorry, didn't take the negative sign in your post as a negative sign at that moment.
  5. sprstpd


    If you are providing all the relevant details, then it is a mistake on IB's part. You need to continually pressure them til they fix it. Write an e-mail a day til somebody gets so annoyed with you that something happens. This technique works for me.
  6. MR.NBBO


    LLY went EX_DIV on FEB. 11th.

    If you got a "payment in Lieu of div." for -35.50, that means you were short from FEB 10th to the 11th (or later) & you owe someone a div.. I'd guess you were short exactly 100 shares over the ex-div.

    I get these all the time-I've got the specifics down pretty good over the years .

    I'm also at IB.
  7. shame on me mister moonwalker !!!!!

    sorry guys the thing is: I wasn't shorting LLY in march when IB billed me but I was shorting LLY in february when LLY payed dividends.

    11-Feb-04 $ 0.36 Cash Dividend

    So I don't know why I pay a month later but it seems to be all right.

    thanks anyway.

  8. thanks mister MR.NBBO
  9. MR.NBBO


    Oh yeah........Why does it show up in march?

    --Because the pay date for this dividend was 3/10/04.

    I guarantee you if you go to your FEB. 10th statement at IB, you'll see you were short LLY overnight that night.

    --Cheers, hope this helps!

  10. Yea right i was short from 8th till 13th. I didn't know the pay date thing yet.

    Thanks for the info and the help.
    #10     Apr 15, 2004