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Short on company which files bankruptcy


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Short on company which files bankruptcy

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 Gary 
Near Dallas, Texas, US
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Quick question:

Let's say I short Best Buy and they file for bankruptcy, stock tanks, and then trading is halted or they are de-listed or moves to OTC for example? What happens to my share if I am still holding a short position while this takes place?

Anyone have experience with something similar?

Gary

As consistently profitable traders.. "We get paid to wait, and we wait to get paid."
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 djkiwi 
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Hi Gary, I have never been in this position but would like to be . This seems accurate based on my knowledge but as he says usually there is fair warning with time to get out.

What Happens If a Stock That I am Short Goes Bankrupt?

Cheers
DJ

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 sptrader 
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I think you can contact your broker and buy back the shares for maybe $1 (or less), to close the position..

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Last Updated on March 29, 2012


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