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Non-Tech : UAI - Unistar - BB reverse merger that moved to AMEX
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To: Q. who wrote (70)7/26/1999 10:57:00 AM
From: Daniel Chisholm   of 133
 
Bre-X, for example, still trades, or so I've read.

My understanding is that Bre-X, at least as of last December (98), was under a "cease trading" order, which is a stronger thing than simply being halted. If one wanted to legally transfer ownership of shares, one would have to petition the regulatory authorities for permission to do so.

Because Bre-X still existed (albeit untradeable), margin was still being charged for maintaining a short position. Most shorts probably have significant deferred tax liabilities so they might not feel rushed towards covering - their only cost being the requirement to continue to post adequate margin (which I would think would be quite modest w.r.t. their unrealized and untaxed gains, unless they happened to short at quite a low price), which would represent an opportunity cost w.r.t. other possible uses of such margin capital.

- Daniel
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