When an investor short sells a stock,which entails borrowing a stock from another investor and selling it in the market with the promise to replace the stock at some later date,the investor who owns the stock that is borrowed must be informed that his or her stock is being used for a short sale.

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When an investor short sells a stock, the brokerage firm typically handles the borrowing of the stock from another investor's account. The owner of the stock is not directly informed that their stock is being used for a short sale.

When an Investor Short Sells a Stock,which Entails Borrowing a Stock