Steve,
On Friday, SIEB announced that:
"... it has commenced a rights offering to its shareholders of record as of July 29, 1998. Under the terms of the offering, which is by prospectus only, shareholders will receive the right to purchase one share of Siebert Financial Corp. common stock at $7.50 for each share that they own as of the record date. The rights will become tradable on August 3, 1998 on the Nasdaq Small Cap market and will expire on August 31, 1998."
As someone who was short SIEB on the record date (I covered today), I have some questions:
1). Do I have any liability regarding these rights? If so, what? My broker said "no", but I don't fully believe that.
2). If so, had I covered prior to the rights being tradable, would that have made a difference?
3). If I sell short again during this time period (but - obviously - after the record date), do I have any liability regarding these rights? (I assume not, but I'd like to know for certain.)
Thank you very much for any help you can provide,
Ken |
