Ampio Pharmaceuticals, Inc. (AMPE) Social Stream



Ampio Pharmaceuticals, Inc. (AMPE): $0.01

0.01 (+354.55%)

POWR Rating

Component Grades

Momentum

C

Stability

F

Sentiment

Quality

D

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Industry: Biotech

Industry

F

Ranked

#285 of 357

in industry

Featured Post From StockTwits About AMPE

$AMPE I would expect a short squeeze approaching the ex dividend date for the Newco dividend. A higher share price during the time of negotiations with a BO partner equates to a higher deal price.

In a nutshell, a short borrowed the stock from person A and sold it to person B. The company is going to pay person B the dividend, but person A is still entitled to it. Shorts have to cover the dividends paid during the time period they shorted (because the coolant isn't going to pay both person A and B), and there are tax consequences for special dividends. How is a short going to pay the Newco dividend to the person the shares were borrowed from?

Also, the accounting leading up to the special dividend should clear out any naked shorts

Here's info on shorts covering dividends:

https://www.fool.com/taxes/2015/01/15/dividends-paid-on-short-sales.aspx

https://www.usatoday.com/story/money/markets/2018/09/13/investing-when-short-stock-have-pay-its-dividends/37591883/

https://finance.zacks.com/avoid-short-sale-dividend-payment-8493.html
Verodus, published August 15, 2021

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