| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
Would it be possible to short sell a stock right before it split
(say disney @$150) and then buy back the shares right after it did
it's 4 for 1 split? Or would the short position be quadrupled also?
Or- ( In other words...)
Sell short 100 shares of disney at $150 ea.
and then after the 4 for 1 split...
Cover the short for 100 shares at $37.50 ea.
Or would you have to by 400 shares to cover the short after the
split...
If the later is not true an awful lot of money could be made, i'm
sure theres a rule about this somewhere!
Any opinions?
John
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 121.1 | When you sell short, you are selling borrowed shares | MR4DEC::GREEN | Mon Mar 23 1992 21:36 | 5 | |
you have to replace what you borrowed. If you borrow 100 shares
to short sell, you would have to replace it with 400 shares after
a 4-1 split.
| |||||