short selling a stock then it splits

Discussion in 'Trading' started by TKOtrader, Mar 11, 2003.

  1. anyone know what happens if you short a stock for the longer term (position/swing trade) and then it splits ?

    just wondering cause i noticed EXPE just split

  2. should automatically be handled and adjusted by the operation folks with your broker.

    i think it could take 1 or maybe even 2 whole business days after the effective trading date. Generally speaking, a full service retail broker who is usually one day behind in your account info will take longer than a direct access cyber like broker.....
  3. Hi,

    It's becomes the same result as if you were long the shares, & is effective the day after the split date. Your acct. will reflect the split shares in whatever increment they're split, with price adjusted accordingly. 2 for 1, 2x as many, & 1/2 the cost, 3 for 2 = 1.5x as many, & 2/3s the cost, etc.

    Been the recipient of many of these, so I'm speaking from experience, from the long & short side.

    Good Luck with Your Trade!
    God Bless & GFtY! Kelly
  4. so its basically the same as being long. so if it is split 2 to 1, i now am short double the amount before the split