Overview of Equity Portfolio Management (2024 Level III CFA® - Reading 14)

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Topic 5 - Equity Portfolio Management
Reading 14 - Overview of Equity Portfolio Management
LOS : Describe the roles of equities in the overall portfolio.
LOS : Describe how an equity manager's investment universe can be segmented.
LOS : Describe the types of income and costs associated with owning and managing an equity portfolio and their potential effects on portfolio performance.
LOS : Describe the potential benefits of shareholder engagement and the role an equity manager might play in shareholder engagement.
LOS : Describe rationales for equity investment across the passive-active spectrum.

[@ditshegomosienyane7252]

Short selling is not yet available in Botswana but I wanted to know who pockets the dividend during the time a stock is “shorted”?

[@arnoldachiri4810]

1) Dividends are unlikely, unless it's a value stock... If it happens, it goes to the owner of the stock when it was issued. 2) If short selling is done as a derivative, then it will 'derive its value' from the underlying asset.

[@Usman-ml4ig]

Short sellers have to make good dividends to the party they borrowed stock from.

[@Usman-ml4ig]

@@arnoldachiri4810 The question was specific. Factually, the short seller has to make good any dividends to the one lending the stock.

[@Usman-ml4ig]

With due respect, there's *no promise* of dividends in common equity! So, really, the management never asserts, 'we may pay you a dividend...' as you claimed at the start! The company may of may not pay a dividend, but the management never makes any promise for it!

[@kantancapital6512]

may already indicates a possibility (which implicitly tells us that the company also may choose not to pay dividends) from my understanding.