what happens if short during Trading Suspension / Halt

Discussion in 'Trading' started by billpritjr, Jan 7, 2012.

  1. Scenario

    Trader is short ABCD company due to ongoing rumors and speculation of fraud.

    A few months later, the SEC orders a trading suspension to the shares.

    Now what ? How can the trader exit his position (he is short, he does not "own" shares)

  2. m22au


    How can the trader exit his position?

    Given that, as you stated, there is a trading suspension, it follows that the trader cannot exit his position.
  3. hkrahra


    what happens if i give a fart to a puddle?

  4. You will be paying interest on the borrow for a long time :)
  5. He also won't have to pay taxes on his gains for a very long time.