Short Selling.

Discussion in 'Trading' started by GotherL, Mar 28, 2016.

  1. GotherL

    GotherL

    I got a quick question...

    Gasl went up 800% the other day due to a split. What would happen to investors who had short shares?

    Would they suddenly see losses of over 800%? So $10000 that's 80k or would it see no difference.
     
  2. sprstpd

    sprstpd

    GASL had a 1:10 reverse split. So let's say you were short 1000 shares, then after the reverse split you would only be short 100 shares. The price would be 10x the previous close. So you would see no difference.
     
    MoreLeverage likes this.
  3. Of course, you would not. These leveraged ETFs do reverse split all the time :)

    The only thing might concern the possible "odd lots", which are transformed in cash (and you may want to short some more with the occasion).

    GASL reverse split:

    05/20/2015 1 for 10
    10/01/2015 1 for 5
    03/24/2016 1 for 10
     
  4. %%
    Yes; no difference, assume no odd lots + no gap change.I think you mean GASL went up , not the price, which is a stock split, more than an actual price change-sort of LOL. I perceive you know what we mean.