Overstock Fights Wall Street Over Dividend Amid 400% Rally
- Company wants to control where digital security will be traded
- Brokers and exchanges argue that plan sets bad precedent
Photographer: Daniel Carde/Bloomberg
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Overstock.com Inc.’s stock price has been on a tear during the coronavirus crisis, but behind the scenes the online retailer is locked into a pitched battle with Wall Street over its controversial plans to issue a first-of-its-kind digital dividend.
The fight stems from Overstock’s demand to control where the new securities are allowed to trade, rather than letting investors buy and sell them wherever they choose. Earlier this month, the company sent a letter to a number of financial firms reminding them that it expects all trading in the dividend to take place on a venue called tZERO, which Overstock owns.