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Basic Question 16 of 16

When a stock that pays a dividend is sold short, ______

A. all dividends accrue to the short seller.
B. the buyer of the stock must reimburse the short seller for all dividends.
C. the short seller must reimburse the lender of the stock for all dividends.
D. the short sale must be reversed on the ex-dividend date.

User Contributed Comments 4

User Comment
Ricci32387 it is nice to see that the lender is female haha
DonAnd lol!
Inaganti6 feminist brokers ftw !
Cartagena The world's changing. The future is robot.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

compare positions an investor can take in an asset

calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call

CFA® 2024 Level I Curriculum, Volume 3, Module 1.