Heavy trading in NationsBank tied to dividend-related activity

December 04, 1992|By Bloomberg Business News

NEW YORK -- Yesterday's heavy activity in NationsBank Corp.'s stock stems from dividend-related trades, said Rusty Page, senior vice president.

Early yesterday, a block of 6.6 million NationsBank shares was crossed at $50.875, representing about 2.7 percent of the stock outstanding. A 4.9-million-share block, making up about 2 percent of NationsBank's common stock, was crossed at $52.

Mr. Page said Merrill Lynch & Co., PaineWebber Inc. and Dean Witter Reynolds Inc. have been involved in NationsBank dividend swaps this week, although he said he was unsure whether those brokerage houses participated in yesterday's block trading.

NationsBank was the most actively traded issue yesterday, with 27.8 million shares changing hands. The stock closed unchanged, at $50.50.

On Nov. 30, NationsBank's stock traded ex-dividend by 40 cents a share, its quarterly dividend rate. The dividend is payable Dec. 23 to shareholders of record Dec. 4.

Ex-dividend means that a purchase made on or after that date does not qualify for the next quarterly dividend.

But any seller of the stock qualifies for the dividend. A dividend play, or dividend roll, is defined as selling the stock to someone who gives it back after qualifying for the next dividend.

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