posted
I have heard that if a person owns a stock and the company goes bankrupt usually they cancel the shares and the person would loose there money. I was wondering what would happen if a person shorted a stock and the company later filed for bankruptcy. The person who shorted never technically owned the stock until he would cover it. But if the shares get canceled how could he cover.
Machiavelli
posted
If he doesn't cover he will be in big doo doo with his broker etc...
podcaster
posted
machiavelli---- you do have a way with words LOL
BuyTex
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ooops: short a stock that goes bankrupt? walk away scot free...there's "nothing" to cover
podcaster
posted
quote:Originally posted by treemoney: I have heard that if a person owns a stock and the company goes bankrupt usually they cancel the shares and the person would loose there money. I was wondering what would happen if a person shorted a stock and the company later filed for bankruptcy. The person who shorted never technically owned the stock until he would cover it. But if the shares get canceled how could he cover.
treemoney-- as i understand it, many Q stocks continue to trade even after the bankruptcy. the new issue has a "V". i know that doesn't clear up the question, but it's a start
posted ![[Razz]](tongue.gif)