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Manufactured Payment

What is '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.

Explaining 'Manufactured Payment'

Short selling is the most common situation in which one must borrow securities. In order to sell a stock short, a trader must borrow the stock. Since the short seller has borrowed the security, dividend payments made on the stock during the term of the loan must be paid to the lender. This can be a significant cost of short selling if a stock pays a high dividend yield.


Further Reading


Manufactured housing: A misunderstood real estate market
www.clutejournals.com [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

Export credit insurance schemes and manufactured exports with particular reference to Australia 1960-1972Export credit insurance schemes and manufactured exports with particular reference to Australia 1960-1972
minerva-access.unimelb.edu.au [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

Why advocates need to rethink manufactured housingWhy advocates need to rethink manufactured housing
www.tandfonline.com [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

The effect of external finance on Africa's variety of manufactured exports to the European UnionThe effect of external finance on Africa's variety of manufactured exports to the European Union
journals.co.za [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

System for assembly and distribution of automobiles utilizing a plurality of partner integrators and a plurality of manufactured and service modulesSystem for assembly and distribution of automobiles utilizing a plurality of partner integrators and a plurality of manufactured and service modules
patents.google.com [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

The decision to purchase a manufactured home: a nested logit model of determinantsThe decision to purchase a manufactured home: a nested logit model of determinants
www.tandfonline.com [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …

Impact Factors of Trade Terms Changes of Export Price of Manufactured Goods in ChinaImpact Factors of Trade Terms Changes of Export Price of Manufactured Goods in China
en.cnki.com.cn [PDF]
… reputation was completely tarnished because the homes were pushed onto consumers who could not afford the home payments … the land purchase, permits, on site work, the manufactured home down payment, the final manufactured home payment, transportation and …



Q&A About Manufactured Payment


What can be significant about short selling?

Short selling can be expensive if there are high dividends being paid out on stocks.

Who must report manufactured payments on Schedule A?

Taxpayers who have investment interest expenses must report them on Schedule A.

What are some sources that provide guidance about tax matters and other information that may affect your federal income taxes?

Some examples include publications, forms, schedules, instructions, and notices issued by the IRS or its agents such as Forms 1099-INT and 1099-DIV; revenue rulings; revenue procedures; notices; announcements; regulations; letters; attorney general opinions or pronouncements issued by state attorneys general offices regarding their interpretation of federal tax laws applicable to their states' taxpayers ; state statutes enacted by legislatures ; judicial decisions interpreting federal tax laws ; public announcements made by government officials such as members of Congress , Treasury Department officials , or Internal Revenue Service (IRS) officials ; news releases published by various organizations including those issued by trade associations representing businesses , labor unions , professional groups , educational institutions , etc.; newspaper articles reporting on events related to taxation issues ; speeches delivered at meetings organized for business

Why does this article contain a citation from an earlier publication by the Internal Revenue Service (IRS)?

The IRS provides guidance about tax matters and other information that may affect your federal income taxes, such as changes in tax law or recent court decisions.

How does one make a manufactured payment?

The lender customarily maintains the right to payments which accrue on the security.

When was this article written?

This article was written in January 2017.

Where can you find IRS instructions for Schedule A?

You can find it online at https://www.irs.gov/instructionsi14scaidm143569961628 .

What is Manufactured Payment?

Manufactured payment is a type of investment interest expense.

How do you calculate the amount of manufactured payments to be reported on Schedule A?

You can find the answer in IRS instructions for Schedule A.

What is a manufactured payment?

A manufactured payment is a payment made to pass through dividend and interest payments from the borrower to the lender of those securities.

Why would you need to borrow securities for short selling purposes?

To sell stock, one must borrow it first before they can sell it.