Replies to post #76032 on Sulja Bros. Building Supplies, Ltd (SLJB)

[Grande25]

Right, I see your point... I'm new and make incorrect assumptions. Shorters borrow money on anticipation that a stock will decrease in value so any increase would be bad. For example, if a shorter "buys" a short position of 100 shares at $10 per shares and is lucky enough to sell the shorted stock at $8 per share then he just made $200.

However, the scary thing for a shorter is if the stock sky rockets to $100 per share then he has to come up with $10,000???

What happens when they all just run out of money and declare bankruptcy? Do we still get our money!?!?

[jk21]

I've done some research on NITE and they were sued in 2003 for a naked shorting. charges were dropped.
charges have been dropped in like 12 out of the 14 cases and the other two are pending at this point. as far as i found from my research, nobody has gone to jail for it yet. This is the one issue that worries me about sljb. i'm not even that worried, but it's just the only thing, so I think about it and try to dissauge my worries.