STOCK SELLING
STOCK SELLING
Short SELLING STOCKS: What happens if you short sell a stock that goes bankrupt?
I'm thinking worthless small caps, Enron, etc. that end up being worth nothing. It seems that normally you would get a percentage based on how much it fell, thus doubling your money, correct? And still: can you buy to cover a stock that is worth nothing and likely de-listed? I know it's a rather unlikely scenario, but it's also rather interesting. Thanks!
Normally, you cant short sell worthless small caps. If the stock is going bankrupt, etc. You will most likely get a margin call that will force you to cover it before it every actually goes bankrupt and gets delisted.
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