 In any case the amount of profit on such a transaction is usually small, meaning that it may not be worthwhile after brokerage fees, the risk of holding shares overnight, the market spread, or possible slippage if the market lacks liquidity.Dividend stripping or cum-ex trading can be used as a tax avoidance strategy, enabling a company to distribute profits to its owners as a capital sum, instead of a dividend, which offers tax benefits if the effective tax rate on capital gains is lower than for dividends.For example, consider a company called ProfCo wishing to distribute D, with the help of a stripper company called StripperCo.