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General Category => Shares => Topic started by: czc on January 23, 2016, 11:55:38 am

Title: Manufactured Dividend
Post by: czc on January 23, 2016, 11:55:38 am

I see a line in easy equities that says manufactured dividend. Is that something they made up or is it normal?

Title: Re: Manufactured Dividend
Post by: Hamster on January 23, 2016, 09:48:54 pm

Saw it as well. No idea what it means. Maybe it's some sort of cumulative sum because it is an ETF (DIVTRX in my case) paying a dividend?

Title: Re: Manufactured Dividend
Post by: jaDEB on January 25, 2016, 07:17:25 am

DEFINITION of 'Manufactured Payment'

A payment made to pass through dividend and interest payments from the borrower to the lender of those securities. Manufactured payments, represented as interest or dividend payments, occur frequently in securities lending. In such an arrangement, title to the securities passes to borrower, but the lender customarily maintains the right to payments which accrue on the security.


Read more: Manufactured Payment Definition | Investopedia http://www.investopedia.com/terms/m/manufacturedpayment.asp#ixzz3yELDEOOc