Replies to post #95506 on NorthWest Biotherapeutics Inc (NWBO)

[colmar]

SS, the shares are counted in the float. The borrow and subsequent delivery of the shares are the transactions which don't impact the float, if you see what I mean, even though the underlying shares are sold and repurchased.

[GoodGuyBill]

Sorry Senti-- I got side tracked by a some evening family drama with my teenage daughter...good grief.

My knowledge of shorting is limited. I don't do it as the risk is potentially unlimited. I'd rather buy put options where i'm limited to the loss of my investment only. But, against my judgment, I try to answer the question anyway.

My understanding is the float consists of the total number of short shares "opened" (my terminology). At some point, the buyer must close the short position by buying the shares on the market. If the price drops, the buyer buys back the stock at the lower price and make a profit on the difference between the price when position was opened vs when it was closed. If the price increases, the buyer must pay the broker the difference.

By "Shares sold and not deliver", I assume you are referring to an "open" short position by a buyer who doesn't have the money to close the position. My assumption is this would result in "Shares sold and not deliver",IMHO. What happens in this case, I am not sure. I would imagine the broker would ultimately have to close the position, return the borrowed shares and pursue the short buyer to recover the funds.

Keep in mind I don't short. I don't think it is EVER wise. So, I never sought to understand the details.