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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Ken Brown who wrote (129)9/8/1998 3:58:00 AM
From: Q.  Read Replies (1) of 172
 
Ken:

I wonder if it's possible that shorting the xxxxR rights in a rights offering would always work. For example with CEF's.

Usually the rights are in the money, so people will exercise them. But some people won't, because they aren't paying attention or don't know what they are doing.

If your broker always has enough of the unexercised rights, you could borrow them right up till they expire. Even if they expire in the money.
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