Not sure if this counts as short selling

• 22 June 2011

• #1

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Bunkum

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I just received an email stating that CommSec has bought the shares on my behalf, along with the invoice. Now since the settlement date hasn't occurred yet (few days away), does this mean I own the shares or not? So if I sell them before the settlement date will this count as short selling?

 

• 22 June 2011

• #2

investorpaul

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Yes you are the owner of the shares, however if you fail to pay by settlement they will be forfeited to recover the funds.

It would not be short selling if you sold the shares prior to settlement.

 

• 22 June 2011

• #3

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Bunkum

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Ok, thanks a lot.