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Stock swaps happen often, but in transaction form. But, in BB's stocks party and the counterparty have the same B/D in this case possibly, I am not sure if they do, in Canada, a journal entry could be conducted. My question for Marcasse is, what did he use to collateriaze the swap at 5/8 and what kind of money hit is he taking by doing such a transaction. Shorting 1,200,000 shares at 5/8 with a stock currently at $1 1/2, that is one hell of a hicky to cover up at this point. $1,050,000 right now. What is going to happen if this short squeeze ever comes, and say the stock goes to $5.00(lol)that is a $5,250,000 cramp. The firm he is using must be sweating it unless he has that type of funds available if he is hit with a margin call. And they would require him at that point to have at least $6,000,000 in funds or equity to cover the position if it is called out on him. |
