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len5002 len5002
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11 years ago
I know when occupying a short position on a dividend paying stock, you are required to make instead of receive payments.  I also know that after dividends are paid, stock price generally declines.  

My question is:  Does the percentage decrease in price usually outweigh the amount of the dividend payout?  In other words, does this type of trade have the potential to be a for the most part profitable scalp?
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wrote...
#1
11 years ago
The decrease in price is always exactly the same as the dividend payout.
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