Shorting question

Discussion in 'Trading' started by markd85, Jul 18, 2007.

  1. markd85

    markd85

    Hi All
    Are you responsible for the dividend only if you are short ON the ex-dividend day? Could you cover the day before or short the day after and not have to pay? Thanks.
    Mark
     
  2. harkm

    harkm

    Yes, as long as you aren't a holder when the stock price is adjusted down for the dividend then you don't have to pay.
     
  3. markd85

    markd85

    And the price is adjusted down on the ex-dividend date. Right? Thanks.
    Mark
     
  4. jond83

    jond83

    correct
     
  5. markd85

    markd85

    Thanks Guys.