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Friday, April 30, 2021 1:56:53 PM
What happens if you short a stock that goes-bankrupt or gets delisted?
You make 100% on your return.
Shorting works when you borrow x shares and sell them.
You hold the money and wait for the stock to go down.
Then you buy those x shares back at a cheaper cost and pocket the difference (in theory).
But when the stock goes bankrupt or gets delisted, you don't have to buy those shares back.
Pure profit.
https://www.quora.com/What-happens-if-you-short-a-stock-that-goes-bankrupt-or-gets-delisted?share=1
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