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Re: onehundredmph post# 22309

Thursday, 03/16/2017 7:30:33 AM

Thursday, March 16, 2017 7:30:33 AM

Post# of 61601
Neither a long nor a short position is materially affected by a stock split - the value of the position does not change. So, if a company has announced that it will split in six months, it should have no bearing on the attractiveness of the short investment.
If a forward split, the shorter will owe more shares at reduced price. If a reverse split, the shorter will owe fewer shares at a higher price. So, no value change.
However, if the share price increases or drops AFTER the split, the shorter will be affected.