shorting UTSI - SEC investigation

B

billpritjr

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...)?

thanks
 
Quote from StLouisTrader:

What exactly is your question?
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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)
 
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.





Quote from billpritjr:

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)
More...
 
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