I understand that if I short, say, 10 shares of XYZ corp, and XYZ pays $1/share dividend while my position is open, then I owe the real owner the the stock $10. But what happens to stock voting privileges? E.g.,
There are 100 shares of XYZ in circulation. Alice owns 48 of them; Bob, 52. I short-sell 4 shares, borrowing (transparently) from Bob and selling them to Alice. Total shares: Alice has 52 in her possession, Bob has 48, though he is owed 4 more. A call goes out to liquidate the company and donate all the proceeds to the Free Pony and Ice Cream Party for the 2004 election. It comes down to a shareholder vote–Alice is in favor, Bob is against. Who wins out? Why?