canadiananalyst

Short sellers have to borrow stock in order to sell short. So they owe the stock back to the lender ( usually a custodian , or bank)

Now when the stock they have shorted pays dividends , the stock will pay dividends to a new registered owner , not to the original lender.

So the short seller now owes not only the stock shares back to the lender he also owes the dividends to the lender( that were paid to someone else).

This is all lvl I or II stuff , why is this coming up here?