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Re: joenatural post# 63890

Saturday, 12/18/2010 7:28:58 PM

Saturday, December 18, 2010 7:28:58 PM

Post# of 94785
It's called a forced buy-in, one of the big risks in shorting stocks. Obviously, the risk of this is higher for 'hard-to-borrow' names.

http://en.wikipedia.org/wiki/Short_%28finance%29

At any time, the lender may call for the return of his shares e.g. because he wants to sell them. The borrower must buy shares on the market and return them to the lender (or he must borrow the shares from elsewhere). When the broker completes this transaction automatically, it is called a 'buy-in'.

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