Dividends
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Because you borrowed the stock, any dividends that come from
selling short belong to the broker who either owns the stock or has
borrowed it. If you are going to hold short stock for more than a day,
you need to find out if and when the dividends will be paid out.
Many stocks that are good short candidates don't pay dividends. A
large number of growth stocks with high P/E ratios fall into this category.
If you day trade, you needn't worry about the dividends
because you will be holding a trade only until the end of the day.
Because you borrowed the stock, any dividends that come from
selling short belong to the broker who either owns the stock or has
borrowed it. If you are going to hold short stock for more than a day,
you need to find out if and when the dividends will be paid out.
Many stocks that are good short candidates don't pay dividends. A
large number of growth stocks with high P/E ratios fall into this category.
If you day trade, you needn't worry about the dividends
because you will be holding a trade only until the end of the day.