Being short and rights issues - Aussie Stock Forums

Results 1 to 2 of 2
  1. #1

    Default Being short and rights issues


    can some one give me an idea on what are the consequences on a short position if the company makes a rights issue. i understand that the price gets adjusted after that but seeing that you don't increase your quantity how does your position's profit/loss gets affected or is there no affect at all and how can it be put down to an example. Santos for example if one went 1000 shares short on 17.00 what's going to happen when market reopens after the 2 for 5 rights issue?

  2. #2

    Default Re: Being short and rights issues

    Further on the above i've contacted my broker as well as ASX and none could tell me about the entitlement status etc of the lender of the stock or weather there is any liability arising for the borrower (trader) as a result of the rights issue?

Similar Threads

  1. AVX - Avexa Limited
    By Deadcat in forum Stocks 0-H
    Replies: 432
    Last Post: 30th-August-2014, 07:50 AM
  2. Short Selling - Education
    By aussieshort.com in forum Trading/Investing Resources
    Replies: 43
    Last Post: 2nd-October-2008, 01:26 PM
  3. Legal Rights Against Brokers.. If ANY At All..????
    By SevenFX in forum Trading/Investing Resources
    Replies: 14
    Last Post: 20th-November-2006, 10:27 AM
  4. Assignment on Ordinary and Rights Shares
    By sheree in forum Derivatives
    Replies: 20
    Last Post: 8th-May-2005, 08:00 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums