The dividend is owed to both the lender and the bu
Post# of 36537
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Posted On: 02/22/2020 4:59:41 PM
The dividend is owed to both the lender and the buyer. This is not in question. In normal dividend instances the buyer receives the dividend b/c he has physical control of the share. The lender is still owner and he will have a share with a different cusip when returned. He is due dividends which the buyer has to pay in cash to the lender. Its part of the cost of borrowing. But again most shorts dont hold over and ex date.
Counter argument is that the share should drop by the same amount as the issued dividend as the company is now worth less after distributing value. SO it should be a push.
However in our case The NGIO shares can't be obtained so ??? In any case the affected party if there is one will be the lender not the buyer
Counter argument is that the share should drop by the same amount as the issued dividend as the company is now worth less after distributing value. SO it should be a push.
However in our case The NGIO shares can't be obtained so ??? In any case the affected party if there is one will be the lender not the buyer
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