BANKRUPT STOCK
BANKRUPT STOCK
What happens when you short an stock and it goes bankrupt?
Would this be a 100% gain? Say I shorted CFC, 100 shares at $7 and it goes bankrupt, how much money would that be? Thanks!
you made 700 dollars...when you short a stock you borrow those shares and sell them agreeing to give them back at a later date. On your end you want the stock to go down so when you buy them back to give back to the original owner it doesnt cost as much as you sold them for. So again you borrowed 100 shares and sold them for 7 (100*7$)= 700-(100*current price of zero) = 700-0=700 dollars
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