Short Positions and Open Option Positions I’m wondering what will happen to all the short positions that currently exist? In some cases one could conceivably see the short position converted to be a short position in the new company, proportionally to the new conversion rate. In this case, this might not work since the shares will be delisted from the NA markets. Shorting a stock comes with the knowledge and risk of being forced to buy back the stock and close the position with very short notice (pun intended) at the descretion of the brokerage house. I spoke to my discount brokerage house and asked if I could hypothetically short 1000 shares of TSGI ( no I have never shorted TSGI) and they checked and said Yes! With the information of the last trading day being so recent, and the date so close, maybe they have not updated their systems. Will there be a last minute short squeeze on the remaining short positions before the conversation on May 5?
Regarding options, how will they be closed before the conversion?