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Since the broker mixes up all the shares they buy anyhow, how would Tesla know it is you who has voting rights? How would they know whom to pay dividends? Isn'
by ArtTimeInvestor 4y ago
Since the broker mixes up all the shares they buy anyhow, how would Tesla know it is you who has voting rights? How would they know whom to pay dividends?
Isn't it all an abstraction by your broker anyhow? They just show you pixels on your screen, that you have "received" dividends. But its not like Tesla sent them to you. Its just an illusion your broker creates on your screen.
- NovemberWhiskey 4y agoTesla knows because, even if the stock is held in street name, my broker still registers me as the beneficial owner. The difference between receiving a dividend paid to the beneficial owner of stock and receiving a payment-in-lieu of a dividend is very much not illusory - there can be significant tax implications.
- colechristensen 4y agoWhich shares are loaned are assigned. There is a record of who owns what and who borrowed what from whom.