Ann: Dividend/Distribution - PLS, page-355

My post was moderated as being Off Topic so I will repost here -

As stated by RDL -

If you are holding short and dividend is paid then you have to find the div yourself to pay the owner.

This is correct, if you borrow stock and short it then when a dividend is paid the borrower, having sold the stock, will not receive the dividend from PLS, the borrower will have to dip into their own pocket and pay the lender the dividend. PLS does not get involved.

Bobadah, with regard to -

"I simply don't believe someone can lend out my share without my permission and pay me in cash rather than return the share

If your stock is held directly in your own name then it cannot be lent out, it is stock held in nominee that is available to be lent out IF that nominee has a lending policy and it is in their t & c’s.

The lender holds the cash as security over the loan so that should the borrower fail to repay the loan then the lender can either use the cash to buy replacement shares on market or worst case pay the cash in place of the shares.