Replies to post #9580 on Bed Bath & Beyond Inc (fka BBBYQ)

[janice shell]

You do have to close, btw. Otherwise, you will always have a risk out there.

No. There would be some risk if the stock had simply had its registration revoked, and the company then went dark. In that case, however, the stock would still exist. And sensible shorts would cover, just in case a custodianship player came along and picked up the shell.

But that won't happen here, because the common stock has been cancelled. Extinguished. Bereft of life, it rests in peace. It is an ex-stock.

[Prudent Capitalist]

All of the DD was previously posted here. In a bankruptcy, once the shares are cancelled the shares no longer exist and shorts do not ever have to cover. End of story.

[Hanibal]

Ask your fellow apes to educate you. Fat chance though. They are clueless. In fact, they are the reason you are clueless too. The stupidity passes down to each new ape recruit. This is built into the very essence of ape culture which is nothing but one giant circle jerk of Dunning-Krueger patients. You all repeat the same nonsense, total misinformation and outright lies about the very basics of the stock market. It's a fact that those with short positions don't have to close in case of bankruptcy in which the common shares are extinguished, like in BBBYQ. The broker forgives the borrow liability and the short seller realizes a 100% gain, less interest. This is finance 101. Little league stuff. And you don't know a damn thing.

[trader59]

You know how you close a short position on a dead/cancelled stock? You provide your broker with evidence that the stock is dead/cancelled, and they'll close it. Really easy to do on this one.