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You borrowed 100 shares of IBM stocks from your broker and immediately sold them in the stock market. 2 days later, IBM declares a dividend
You borrowed 100 shares of IBM stocks from your broker and immediately sold them in the stock market. 2 days later, IBM declares a dividend of $1.5 per share. Which of the following situations are likely to happen? You will receive $150 dividend payment from the company You will need to return the shares back to your broker The company will pay $150 dividend to the person who bought your shares in the stock market You will need to pay your broker a dividend of $150, which will be then transferred to the account that loaned you the shares
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