Short Sales and Bankruptcy

Discussion in 'Trading' started by brad1970, Nov 8, 2002.

  1. brad1970


    What happens to your short position when a company finalizes its bankruptcy and stops trading?
  2. its your lucky day,you get to keep the part of all is if you never cover you dont have to pay taxes on gain since its not a taxable event until you cover.unless you are a mark to market trader.
  3. There is a school that says do nothing. That way you do not get out of the position, no realized gain. No tax liability.