InvestorsHub Logo
icon url

DBX5

03/01/11 11:21 PM

#4893 RE: ChangeDirector #4892

this is not a new concept that if you sell shares and company stock ceases trading, you don't have to buy it back. On the flip side if you are long stock that stops trading, your broker will show your position for a week or so after which they will remove it from the account as if you never had it. There is no forced buyback, because to buy back the stock you have to have a person that you buy it from ( seller) and if stock is not trading there is no one that can fill your order. There are plenty of investors who sell stock short and wait for the co. to belly up or reverse split. This way they make 100% on their investment. It does require higher buying power than if you were buying the stock long. As they say when it goes up, sky is the limit, but when it goes down, 0 is the max it can drop to, making all short positions potential of 100% return, but their loss unlimited.