Reading 55: Margin Returns

[rdowning]

Hey everyone.
Quick question in regards to a quesiton in the CFA Text.
Reading 55: Pg. 37 Q2

In the answers it includes dividends received as part of your profit. Is it not true that dividends have to be returned to the lender of the stock? Therefore, should the dividends be excluded from your profit? Thanks

 

[JoeyDVivre]

I can't believe the book has you making money on dividends received in a short stock position. Maybe you read that wrong?

 

[rdowning]

You're right Joey.... I think i was still asleep before i got my coffee

Thanks for the help anyways.



Edited 1 time(s). Last edit at Friday, July 27, 2007 at 10:53AM by rdowning.