shorting UTSI - SEC investigation

Discussion in 'Stocks' started by billpritjr, Oct 7, 2005.

  1. I may short UTSI. It closed at $5.64 today, on huge volume based on SEC investigation.

    Couple this with a sputtering market, and my short-sell desires are up on this one.

    Forgive my stupidity, but if I short this and the shares go to zero and get de-listed, or a trading halt occurs, am I liable for the shares (I am short, I do not own them...)?

  2. What exactly is your question?
  3. Htrader

    Htrader Guest

    This stock is very difficult to locate on the street.
  4. If I am holding a short position of UTSI 2000 shares, and the stock gets delisted or trading halts, what now happens to my position (borrowed on margin)
  5. To be sure, you need to ask your broker exactly how they handle this situation. But, the generic case is if you're short a stock that goes to zero, you never have to "cover"/realize your gain - so you've made the money and never have to pay taxes.

  6. Never have to pay taxes? LOL
  7. BOX options exchange busted a big sell of puts in UTSI yesterday. Strange stuff.