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Naked shorters by definition own no stock currently so have no right to vote, but it may or may not affect calculations regarding the average seniority of stock
by qubex 9y ago
Naked shorters by definition own no stock currently so have no right to vote, but it may or may not affect calculations regarding the average seniority of stock against which rights are measured (it cannot be absolute, since you could conceivably have a situation where everybody shuts purchased the stock, and thus ownership of all would be zero, and thus nobody would have a right to vote).
And what of options and other derivatives? What of trust funds and other intermediate vehicles of ownership that might themselves have (perhaps partially) changed hands?
- hendzen 9y agoYeah I expect these rules will be rendered effectively moot by equity swap trading.
- eries 9y agoOur rules handle derivatives correctly, including swaps. Otherwise it would be trivial to avoid the long-term vote weighting
- qubex 9y agoWhat happens when stock is held by a shell company (or trust fund) and its property partially changes? What happens when one LTSE form buys up part of another LTSE firm that partially owned the first one to begin with? (I assume that rules are built with ADG in mind, general constructs are far more involved.)
- deleted 9y ago[deleted]