Curious
Can any one help me understand, why the hedges would short a company to the point of being delisted. doesn’t that just fuck them as well being the point is a steady feed bag?
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calm Duck_5721 : No because if it delists then the shares are basically worthless
NoNo444 calm Duck_5721 : so they get their winning bets
71811517 : If it delist they don't have to pay anything. Imagine borrowing money from some person and that person dies. You are now free from paying anyone.
104805476 : No thats the way the short makes the most money. When I sell the share at 1 USD, and then buy the shares back at 0 USD. What do I get? One full 1 USD.
Now if the shorts sell the share at 1 USD, and then buy the shares back at 5USD. What do the funds get? A BIG RED LOSS OF 4 USD.