Telephonics, I have several shorting related questions for you. Do you know the rules surrounding convertible debentures and hedging? Can a hedge fund involved in a deal immediately short up to the amount of shares they plan to convert?
Here's my question. CXTI never showed up on the Reg SHO list during the past month, so clearly the hedge funds were able to short up to 2.3MM shares with no problem. Now what? Can they sell these newly received 2.3MM shares if they have not been registered? Or can they sell some of them as long as they use a Form 144?
Also, what happens to those short positions if and when the hedgers sell the underlying stock? Are they forced to close them out?
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.