I'm amazed that you would post your ignorance for all to see. First of all, there is NO accrual when it comes to stock dividends. I would be responsible for paying the full quarterly dividend if I happened to be short at the time the stock went ex-dividend but if I have covered by that time, I don't owe a penny.
Secondly, I'm not borrowing any MONEY from the brokerage; only stock held in Street name. If I had borrowed MONEY, I'd pay the brokerage call rate in the 8% area to compensate the firm for the fact that had they not loaned the money, they could have invested it themselves. But there is no compensation for usage of shares held in Street name since there is nothing useful that the brokerage can do with it.
Did I call the brokerage? Of course not - I have been in the stock market for 50 years now and I know a lot more than most brokers do.
I'm here to teach and to inform and you can now consider yourself to be educated in these important matters.
I did not say anything about borrowing money. I said that you borrowed the stock which is loaned to you by your broker for a fee. I can only assume that by your post that you did not ask the broker what that monthly fee is and you failed to get the broker loan rates. And by the way; isn't borrowing stock and receiving cash from the short sale the same as borrowing money? As the stock is owned by someone else and not just floating around as you would call in the Street Name. So; isn't your statement misleading? Very much so!
Let me make this absolutely clear: There are NO charges, fees, interest or extra commissions charged by the brokerage for borrowing the shares to sell short. When I sold the 5,000 shares short last Wednesday at $27.62, I was charged the same nominal $10 in commissions that I( would have been charged if I had bought 5,000 shares or merely sold 5,000 shares. The only other charges will be $10 when I cover the short. This is just basic investing.
Now if I borrow MONEY from the brokerage, I would have to pay the brokerage call rate which is a steep 7.5% to 8.0%. That's to compensate the brokerage for the fact that if they didn't lend the money, they could invest it themselves and presumqable earn a reasonab le rate. But there is NO compensation for lending client shares held in Street name since brokerages typically don't sell short for their own investment purposes and there is nothing else that the brokerage would be able to do with these shares.
As proof of this, I have now seen my January statement and there were absolutely NO other daily or pro-rata charges for the two days in January that I was short the stock. And there never will be any added charges either. You really need to attend an investor class for beginners at a community college as it is obvious that you are a complete know-nothing iin matters like these.
By the way, I now have over 3/4 of a million dollars just sitting in the account in FREE CASH BALANCES. Do you really think I'm going to be charged interest or added fees under such circumstances? What a joke!['