Ok, I have a fairly basic short sale question and I heard something a long time ago and just can't find the info to disprove it, so I need your help. When you short a stock, you borrow the shares of somebody else and sell them. As far as that person knows, they still own the shares, in fact you need to pay them a dividend out of your own pocket. The question is this, if the person who has lent you their shares wants to sell their shares today, at a specific price, are you obligated to buy them the shares, ie covering your short? And what price is it settled at? Or can you stay short as long as you want.