« previous next »
Pages: [1]

Author Topic: Manufactured Dividend  (Read 6117 times)

czc

  • Full Member
  • ***
  • Posts: 118
  • Karma: +3/-0
    • View Profile
Manufactured Dividend
« 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?
Logged

Hamster

  • Hero Member
  • *****
  • Posts: 535
  • Karma: +13/-0
    • View Profile
    • Off Topic
Re: Manufactured Dividend
« Reply #1 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?
Logged

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: Manufactured Dividend
« Reply #2 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

Logged
jaDEB

If it scares you, it's a sign you need to do it
Pages: [1]
« previous next »