What happens to a short position...

DaveinJapan said: "if the company goes bankrupt? Do you get to keep the whole short sale loan, or what? Has this ever happened to anyone?"

thezster said: "As mentioned before - this is a trader's wet dream come true...."

thezster said: "I will admit, it's never happened to me before... And, while it would be my fondest dream for it to happen, I'm sure it would take a while before actual funds were released on the final transaction, pending final disposition of the company's stock.... On the other hand, I would imagine that, long before the company stock was actually worthless and not available for trading.... you would be able to cover your short at some fraction of a cent to some idiot wanting to get into penny stocks....... :signs053:"

Rbreb13 said: "[QUOTE=thezster] you would be able to cover your short at some fraction of a cent to some idiot wanting to get into penny stocks....... :signs053:[/QUOTE]:roll: :roll: :roll:"