Cant get my head around it. If you do a naked short you sell a stock and get the current sp for it. If you then have a stock split your still short the same amount, only difference is the number of shares.Yes I agree, this stock dividend is engineered to target the MMs that are abusing their naked shorting priviledges to further their own proprietary trading.
Everyone else will be either okay, or unaffected. It's the manipulators that are headed to the mill to have their grist ground down.
As I have said previously, there are effectively no retail shorts left with open positions on TSLA. It's all deep pocketed MMs now, the likes of Jonass and MorganStanley and their ilk.
Their money won't help them now, nor will their priviledged postions as MMs operating under the cover of Regulation SHO (the Market Maker's exemption from the SEC prohibition against naked short selling). They will have to cough up actual shares, and any failure to do so will be recorded in the legally required 13-day FTD reports.
TL;dr Hiro is my new hero.
P.S. Start here on FTDs (then GIYF)
SEC.gov | Fails-to-Deliver Data
What am I missing here?
Sell one share you do not own, you now owe one share. After the spilt you owe five shares.
1450 - (290*5) => 0
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