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bleach168 wrote:The idea behind shorting a stock is you borrow someone else's shares to sell right away with a promise to return those shares when you are done shorting. Since you never really have possession of the stock, you will not receive any dividends.
AEMRICH wrote:Hey guys i've got a question involving stocks. My first question is when you short a stock do you still get the dividend? Say you find a stock that has a 14% dividend, if you were to buy 500 shares of this stock and then short 500 shares of this stock (at the same price) for a year this would neutralize any gains and loses yes? but you would still be getting 14% gain on 1000 shares of this stock minus your transaction fees. 14% is almost 3x more than any CD is offering. Is there a flaw in my thinking??
Curtis Pride wrote:And where the hell did you find a stock with a 14% dividend yield? Getting a 14% return above and beyond any appreciation in the stock is a pretty damn good investment.
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