Among the risks associated with short selling a stock are

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Among the risks associated with short selling a stock are:

Default risk: potential unlimited losses when buying back the stock.Regulatory risk: a ban on short sales can create a surge in the stock price.Dividend risk: the short seller must provide dividend payments on the shorted stock to the entity from whom the stock has been borrowed.Systematic risk: the uncertainty inherent to the market as a whole and which cannot be diversified.​

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