"I’ve read some horror stories from short sellers who got stuck short a halted stock. You not only run the risk your capital being tied up in a halted stock, but you risk the stock being delisted from it’s exchange, leaving no market to close out your position. This is what happened to Peter To and his short position in CETC. As a result, he’s been charged close to $700 a month in margin interest for the better part of two years, with no end in sight."
http://ptotrading.blogspot.com/2019/03/the-cetc-situation.html
TLDR,
"It is possible this is all a nefarious scheme specifically designed to milk short borrow fees in perpetuity."
Who is the money going to?
"The money is supposed to go to shareholders who are loaning out the stock. I think some percentage of the interest goes to the clearing firm that cleared the stock borrow."
Hell of a clever scam, "to milk money in perpetuity." Holy fuck.
Submitted March 20, 2021 at 02:44AM by Defiant_Statement_81 https://ift.tt/390DlOl
