Ice,
RE: Shorts Getting Their Borrowed Stocks Called In
Actually, that is relatively rare, which is why I listed it last as a time when shorts would buy back to cover.
Basically, if my shares have been borrowed and sold short and I either try to sell my shares, have my certificates mailed to me, or transfer my shares to a cash account, my broker has to replace my shares. If he has other shares available, it's no problem. If he doesn't, the person who shorted my shares will get his short called in.
As widely traded as IOM is, I wouldn't expect that to be a problem. BUT, on the other hand, as large as the short interest is, it could be.
If there are any "real" shorts out there reading the thread (I'm pretty sure that the loudest one is all talk...), maybe they could tell us how frequently that really happens. I've never shorted a stock, although I've been tempted with some.
- Michael Coley
- i1.net |
