CyberKey Solutions fka CKYS

[jking1999]

As long as a company does not go out of existence, or declare bankruptcy, any short position can be forced to cover.

Some people believe that since most NSS entities are offshore, that they can just pocket the money and never have to worry. Nope. They can only short shares through a NASD licensed broker/brokerage. These brokers typically will keep the proceeds of the sale until such time as the position is covered.

MMs who may do an NSS are somewhat in the same boat. It is possible due to a company's improving quality, that it becomes necessary to cover an NSS position - Another MM to who you sold those shares needs you to cover the position for any number of reasons.

There is no way a NASD licensed brokerage who has the financial stature to do any large NSS for themself, or for an offshore client, will risk losing their license.

So, in a nutshell, only if the company fails to survive.