if you short sell? And Right issue has taken place, so Does Right issue has negative positions in Portfolio or not?

External question — Quantitative Finance Stack Exchange Author: Atul Agarawal Original post: https://quant.stackexchange.com/questions/33749 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I am searching for exact accounting example of Stock right position in Portfolio when someone is short sell. Searched a lot over Google, contacted local Brokers as well..Didn't get any response. Please help to understand the secanrio with examples. Thanks

External answer — Quantitative Finance Stack Exchange Author: FinanceGuyThatCantCode Original post: https://quant.stackexchange.com/a/33753 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. If you shortsell a stock, then you are short all the rights (no pun intended) that a stockholder has including dividends, spinoff shares, rights, warrants, whatever. You will owe the rights as well.