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Companies issue stock splits – Stock splits are a way that companies can increase liquidity in their existing stock, and to allow their stock price to be more accessible to public investors. When a stock splits, shareholders will see an immediate increase in the number of outstanding shares they own by whatever the multiple of the split is. Short Selling or Short Trading - dummies When you’re ready to exit your short position, you cover the position by buying back the stock you had shorted. In other words, selling before you buy really means you’re borrowing the stock before you short sell it. This discussion is meant to be a simple introduction, not an exhaustive education to fully prepare you for shorting the market.

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