Forum
Last updated: 

With regards to stocks, what does the term ‘’shorting’’ mean?

I assume if I should buy a stock before its dividend pay-out date and then subsequently sell the stock after getting the dividends, that is ‘’shorting’’ correct?

User comments

  • user image

    No Name

    This strategy is called the dividend capture strategy whereby an investor buys a security to capture the dividend, and then sells that security to buy another security that is about to pay a dividend. By so doing, the investor can receive a steady stream of dividend income instead of waiting for an individual holding to pay its regular dividend. To effect this, Investors looking to capture a dividend must buy the security prior to the ex-dividend date to ensure they are a shareholder of record when the dividend is paid. In theory, by doing this and selling the stock after receiving the dividends, you should be able to capture numerous dividends. However, in practice this is not always the case.

    2019.08.01 18:0

Please leave your knowledge and opinion!

Related Forums

How do U apply for a telephone line in Singapore?

What is the best unlimited mobile data plan in Singapore?

How should I invest on my medical supplements using a credit card?

I'm investing on a farm abroad by using my credit card.I got scammed

What are Stocks?

Why should I invest my money in Singapore?

Related Reviews

Complimentary Night Stay a Success

Very impressed by the complimentary night stay I got after I made bookings for a five nights stay at a resort I spent my birthday at in Malaysia. Even more pleasing was the complimentary golf games at a high quality golf courses in Malaysia. As a matter of fact, I had as much as six complementary golf games.

Citi Cash Back Visa Card / Citibank Singapore

Zero Travel Related Online Merchants

The Citi SMRT card is a pretty decent card for spending but they unfortunately exclude travel related online merchants. This to me is the downside of the card and may be a reason to get another card for travel websites.

Citi Prestige Card / Citibank Singapore

I can enjoy Interest rates starting from 5.80% p.a.

I love that I can enjoy Interest rates starting from 5.80% p.a. (EIR 11.38% p.a.) on their 12-month instalment plan which allows for fixed monthly repayments.The monthly repayment for your Cash-on-Instalments is fixed, allowing you to manage your finances with ease of mind. That works perfect for me as it helps me to be more organized and I give them thumbs up.

NTUC Plus! Visa Credit Card / Oversea-Chinese Banking Corporation

When I apply via MyInfoget I get to use my card instantly

So it is really convenient that I can get and use my card instantly when I apply via MyInfo. And the cards instant digital card that can be used for mobile wallets, online and mobile app purchases. Now aside from the same day physical credit card issuance for online applications you also get S$50 cash rebate upon approval with no minimum spend required. However that is only for new OCBC Credit Card applications.

OCBC Robinsons Group Credit Card / Oversea-Chinese Banking Corporation

Emergency legal and medical assistance

Seldom would you find a card that has your best interest at heart as the AMEX Express Platinum Reserve Credit Card with its Emergency legal and medical assistance even when you are anywhere in the world. You can enjoy privileges around the globe with Live the World and American Express with all round protection against accidental damage or theft for your purchases.

American Express Platinum Reserve Credit Card / American Express International

Spa privileges that come with card membership

I find it very pleasant and rewarding the Platinum Wellness offerings of the AMEX Express Platinum Credit Card as I get to rest and replenish after a hard week at work. I treat myself to spa privileges that come with my Card Membership with spa vouchers from Adeva Spa, Spa Rael and The Ultimate. I do this one’s a week and enjoy up to 40% off à la carte spa services at Adeva Spa, Spa Rael and The Ultimate. Simply relaxing and feels good to be pampered.

American Express Platinum Credit Card / American Express International