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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: the Chief who wrote (1290)	11/17/1998 9:25:00 PM
From: Ward Nicholson	Read Replies (2) \| Respond to of 4467

Chief: I haven't been in this position either, but this is what I understand about it: When you're short you owe shares, so if there's any way you can buy back those shares you can close the position. Usually a de-listed stock will trade over the counter for awhile so that traders can close out positions. When the stock won't even trade the only thing you could do is arrange a private transaction. Let's say I was still short BCD and it didn't trade anywhere. I could arrange to meet with someone who still had his/her shares of BCD and buy all of them for $1 or whatever. I take the shares to my broker, who then closes the position. The pain in the ass about a non-trading stock is that the margin requirements for the short position still stand as of the last reported price. This wouldn't be a problem if you had shorted at a relatively high price, but take YBM for example. If I had shorted at $13.50 and it closed at $14.35, not only can I not take the $ out, but I have to put up more to cover my short margin. That being said, it's my understanding that the short sale can continue indefinately, but the onus is on the shorter to find shares to close the transaction. I haven't heard of a case in which the shorter had to transfer actual $ to whomever the stock was borrowed from. Correct me if I'm wrong. WN