Manufactured Payment
A tax concept whereby the lender of a stock receives the equivalent dividend payment from the borrower of the stock.
Investopedia Commentary
When lending stock, the lender usually maintains the right to ownership of dividend payments and special disbursements. Thus, the borrower is responsible for payment of such distributions when they occur.
Related Links
Stock Basics Tutorial
The Importance of Dividends
How and Why Do Companies Pay Dividends?
See also: Distribution in Kind, Dividend, Securities Lending, Stock, Stock Dividend