RE: RE: Short Selling and Margin CallsThanks for this link grnorth
Therefore from Motley Fool, for my example on INT
But what happens when the CEO engages Gene Simmons and spends business days in NYC, and keeps returning to NYC, and INT stock begins to takes off, from
.50 to
.92, you finally decide that you'd better swallow hard and close out the transaction. You do so, buying back shares of INT at
.92 (if you can).
Here's the record of this possible transaction:
Borrowed and sold short 100,000 shares at
.50: +$50,000
Bought back and returned 100,000 shares at
.92: -$92,000
Loss: -$42,000
Oh my, what a nightmare in less than 2 weeks, what can happen with NEWS OUT TODAY
Can we pass the hat for these unlucky unfortunates
Will this be the Post of the Day
GTLA Longs
SC