GREY:NEVDQ - Post by User
Comment by
rickwayne1982on Aug 17, 2024 6:17pm
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Post# 36184484
RE:RE:Paramount
RE:RE:ParamountI did a Google search and the below answers came up regarding an active short when a stock gets delisted. The most accurate answers will come from the shorter's broker. However, one puzzling question is what if the stock is worth much more after the sale is announced or is replaced with another stock? I'm pretty sure they pay the interests only until delisted and the transaction is canceled. The interesting thing now is that the stalking horse bid values the SP at 8 cents around...
A short seller who didn't buy back the stock before trading stopped may have to wait until the company is liquidated to take a profit. However, the short seller owes nothing. That is the best possible scenario for a short seller. Eventually, the broker will declare a total loss on the loaned stock
When a stock is delisted or suspended, investors may not be able to fill their short positions because the stock cannot be traded, and it will be terminated until the stock is delisted.