Replies to post #206558 on KMA Global Solutions International (KMAG)

[DragonBear]

If a company declares a stock dividend-wrong

both the naked short seller and the short seller are on the hook to deliver those shares to the lender.

If a divy is declared the Short is on the hook for paying the divy to the person or firm who loaned the shares. There is no forced cover.

When a legitimate company announces a divy there are some who chase after the divy buying the stock, resulting in the PPS possibly increasing. If it goes up enough, then one may or may not have a Short squeeze.

Of course this has nothing to do with KMAG. A previously suspended grey stock with no past history of a divy, and no known plans to issue one. There are no Shorts, no NSS positions in KMAG.