Which of the following statements is true regarding short sales?
A) An investor can only remain in a short position for six months or less.
B) Short sales can be done on either a cash or margin account.
C) Short sellers borrow the stock sold short from the exchanges.
D) Dividends paid during the short sale must be covered by the seller.

Question

Quizplus · Accepted Answer

Short sellers are responsible for covering any dividends paid during the period they hold the short position, as they have borrowed the shares and sold them.

Which of the Following Statements Is True Regarding Short Sales