That day? Since it falls the price of the dividend.
Answers: (1) they would be responsible for the dividend on the borrowed short shares, since the party they borrowed the shares from still expects their dividend.
(2) the commission and spread may be bigger than the dividend.
(3) "generally" is a big word. there are other factor that affect the stock price. If there is a big communication flash that day or evening, they would be responsible for a potentially roomy loss, in adding together to the above costs.
(It's a bad perception.)
When a company is going X-div, if more difficult to borrow the stock, which will prohibit the short sale.
The profit potential is not that great and the risk is greater than the reward.
Yes the price of the stock is reduced at the pipe by the amount of the dividend, but this doesnot mean that the bazaar price will stay lower, it could, and in most cases, increase or at least possible move up to cover the dividend,
If you could short the day past X-date, your liable for the dividend, so it more difficult to make any profit.
Nice try, but you'll loose 99% of the time, and they are terribly bad probability.
Where did you get the impression that stocks generally leak in price on the ex-date? Do you hold data that supports your feelings? Because plenty of stocks go up when dividends are declared--it's a sign of a athletic company.
Plenty of people short stocks when they reflect on the price will fall. That's the attractiveness of the market. You can buy a put, provide a call, in that are all kind of ways to make money when you are bearish. Actually, the most act you will see like that is to say right before quarterly income reports, generally.
Because the shorting being becomes responsible for paying the dividend.
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Answers: (1) they would be responsible for the dividend on the borrowed short shares, since the party they borrowed the shares from still expects their dividend.
(2) the commission and spread may be bigger than the dividend.
(3) "generally" is a big word. there are other factor that affect the stock price. If there is a big communication flash that day or evening, they would be responsible for a potentially roomy loss, in adding together to the above costs.
(It's a bad perception.)
When a company is going X-div, if more difficult to borrow the stock, which will prohibit the short sale.
The profit potential is not that great and the risk is greater than the reward.
Yes the price of the stock is reduced at the pipe by the amount of the dividend, but this doesnot mean that the bazaar price will stay lower, it could, and in most cases, increase or at least possible move up to cover the dividend,
If you could short the day past X-date, your liable for the dividend, so it more difficult to make any profit.
Nice try, but you'll loose 99% of the time, and they are terribly bad probability.
How abundant symbols does stocks hold on the New york exchange?
Where did you get the impression that stocks generally leak in price on the ex-date? Do you hold data that supports your feelings? Because plenty of stocks go up when dividends are declared--it's a sign of a athletic company.
Plenty of people short stocks when they reflect on the price will fall. That's the attractiveness of the market. You can buy a put, provide a call, in that are all kind of ways to make money when you are bearish. Actually, the most act you will see like that is to say right before quarterly income reports, generally.
How to download a simple abdication challan for my stock continue?
Because the shorting being becomes responsible for paying the dividend.
Resolved Questions: