Ex-Dividends

This is a discussion on Ex-Dividends within the Spread Betting & CFDs forums, part of the Commercial category; As we know when a company goes Ex-Dividend the share price falls. Therefore, can money made from Shorting before Ex-Dividends, ...

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Old Jul 11, 2009, 10:05pm   #1
Joined Apr 2009
Ex-Dividends

As we know when a company goes Ex-Dividend the share price falls.

Therefore, can money made from Shorting before Ex-Dividends, so when company goes Ex-Dividends you'll be quids in when SP falls.
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Old Jul 12, 2009, 10:56am   #2
 
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No, if you're short the stock you're also short the dividend so would have to pay the person you sold the stock to the divi
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Old Jul 13, 2009, 7:55am   #3
 
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Quote:
Originally Posted by sharkingtrader View Post
As we know when a company goes Ex-Dividend the share price falls.

Therefore, can money made from Shorting before Ex-Dividends, so when company goes Ex-Dividends you'll be quids in when SP falls.
DOH! Brilliant! Now why doesn't everyone else do that . . . ?
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Old Jul 13, 2009, 10:01am   #4
Joined Dec 2003
Quote:
Originally Posted by sharkingtrader View Post
As we know when a company goes Ex-Dividend the share price falls.

Therefore, can money made from Shorting before Ex-Dividends, so when company goes Ex-Dividends you'll be quids in when SP falls.
If you think you've spotted a trick you haven't because even if you have 1 million and 1 people before you have spotted it, made money from it then becomes so diluted (as everyone else finds it and tries to make cash) that it'll be worthless.

Hope this helps
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