Category Archives: Money FAQs

Frequently Asked Questions

Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).

Short selling is hard enough to get your head around without getting into all the particulars. If you have a basic understanding of short selling, then you probably know that as a short seller, you are required to make up for any benefits a long investor would receive if he or she had actually owned the stock.When you short a stock, you are borrowing the stock from an investor or broker, then selling those shares on the open market to a second investor.