Rent Stocks
Stock renting and Borrowing
When the borrower holds the borrowed shares on the dividend record date, the company automatically credits the dividend to the borrower's bank account. However, since the borrower is not entitled to keep this dividend, as per exchange the dividend is debited from the borrower's ledger balance on the record date.
This debited amount is then credited to the lender's account, ensuring they receive the dividend they're rightfully entitled to.
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