Phunware Inc (PHUN)

[candeloro]

I borrow 1000 shares from the broker
Then I sell them on the market

My account = -1000 shares of PHUN + money from the sale


Now normally I have to cover later and I buy the shares at the open market:

My account = -1000 shares of PHUN + 1000 shares bought at the market +money from the sale - money for buying back shares.

HERE:

I borrow 1000 shares from the broker
Then I sell them on the market

My account = -1000 shares of PHUN + money from the sale


Now my broker transfers the 1000 shares that were exercised through the warrants for free into my account (as it happened to the guy from the link, only he was not short)


My account = -1000 Shares + 1000 shares delivered =0 shares + money from the sale



Where do I have to cover my short?