RE:RE:Is time running out for shorts?So if I own 1000 shares in my account at the brokerage, and someone wants to short sell 1000 shares, the brokerage borrows them from my account and lets the shorter sell my shares to a buyer. The buyer is now the person who has 1000 shares and the rights that went with them. If the shorter doesn't cover his position before the date of record, he would not only owe me my 1000 shares but also 1000 rights.
So yes that could create the scenario where there would be more rights trading than were initially issued, but that happens with shares all the time. So if the shorter is not able to cover the rights he owes me because all the rights are being exercised, the only other option would be to cover with the 666 shares I could have bought $0.15 no matter what they are trading for. The brokerage is never going to say to a client, yeah sorry but you can't have the rights because we lent your shares out to someone who shorted them and there aren't any more available.
Again, this is just my understanding.