Short is very important here, it means someone has sold shares they
don't have as opposed to long which is buying shares in the most common way.
Wm
On 2026-10-09 17:38, Koos Pol wrote:
Hi,
Another translation puzzle to make. I'm having the following text:
"Company returns capital, and the *short* stock holder must make a
compensatory payment for the returned capital. This reduces the cost
basis (less negative, towards 0.00 value) without affecting # units. A
distribution previously recorded as a compensatory dividend is
reclassified to compensatory return of capital, often due to
end-of-year tax information"
I think I get what it says (I'm not a business finance guy). My
question is specific to the "*and the short stock holder*" part.
What relevance is "*short*" in this story? Wouldn't it be the same
for a "long stock holder" ? Can I remove "short" from the original text?
Regards,
Koos
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