4 ms·
My naive understanding: In a short you borrow then sell immediately. If the company disappears you keep the money from the sale (which you already made) and nev
by Thorrez 4y ago
My naive understanding: In a short you borrow then sell immediately. If the company disappears you keep the money from the sale (which you already made) and never have to return what you borrowed.
- adaml_623 4y agoI agree with you 99.8%. I think there would be a clause in any short contract where if you were unable to provide the stock at the end then you would be liable to pay the cash equivalent. If the stock had "gone to the moon" you would be bankrupt but if the stock had gone to zero then your payment would be zero (or maybe miniscule)
- MagnumOpus 4y agoThere is no such clause, and yes you would have to figure out how to obtain the delisted stock from other holders (who are generally not friendly towards you).