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bnabin51 OP t1_ja5hy0n wrote

Reply to comment by chinnick967 in Tax offset on paid dividends by bnabin51

Sorry if I explained it incorrectly. I did not receive a dividend. To receive a dividend, I need to be in a long position. However, I was in a short position.

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chinnick967 t1_ja5i11o wrote

If you did not receive a dividend on the borrowed shares, then you do not need to pay a dividend

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bnabin51 OP t1_ja5ic1p wrote

Then who pays the dividend to the stock lender?

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chinnick967 t1_ja5ihcu wrote

The company pays out the dividend payments to it's stock holders, including the person you are borrowing the shares from

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bnabin51 OP t1_ja5j3ik wrote

I don't think this sounds reasonable.

Suppose a company has a total of 1000 shares and I own all of them. If you borrowed them from me and sold them to Elon Musk. Does the company pay dividends to both me and Elon Musk?

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