NorthWest Biotherapeutics Inc (NWBO)

[TOB]

Actually, an NWBO short seller could be forced to cover anytime their shares are called back.

The lender of the NWBO shares can ask for their shares back on minimal notice.

That is in theory. In actual practice this is not common. Brokers lend shares from both clients who hold NWBO in their margin accounts, and from their own inventory.

As brokers make good money lending shares, collecting both interest and commissions, they won't harm a client wanting to short. Instead they'll borrow NWBO shares from other brokerage firms to make up for any shares they can no longer lend.

Think of it this way. They get a commission from the original buyer, then a commission plus interest from the short seller on the same share. When both close, they get double commissions again.

Brokers could close out shorts during a strong rally, either by request or forced liquidation. Just like a margin call or increase for a long position during a price drop.

Shorting ones own shares used to be common for tax purposes, shorting against the box. But after 1997 the tax rule was changed.

Holders of options and warrants have a risk free or risk reduced short. They can short, cash out on the short and still have the option or warrant. Or they can off-set a short which goes against them with their options and warrants.

This is part of why issuing warrants often invites shorting, for risk free or risk reduced profits, or to lock in a set profit by arbitrage.