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+--- Thread: Connected Dots---->RDS SD partner (/showthread.php?tid=3464)
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RE: Connected Dots---->RDS SD partner - ebster123 - 04-24-2013
But if it is announced $250/pps is the buyout the stock gaps to $250 then there should be another gap up hen the margin calls come and the Horst have to cover right? At tht point they have to buy shares to cover and there won't be any, right?
RE: Connected Dots---->RDS SD partner - Getitrt2 - 04-25-2013
If that were the final buyout price, there would be holders ready to sell at that or close to it, although fewer if holders could take shares of the buyer in a tax-free exchange. Typically, the shares would be trading a little below the buyout price, and arbitrage investors would be buying them up. If there were more shares short that shorts were being forced to cover than there were sellers for, that would be a situation I don't think I've ever seen, and I guess could force the shares even higher to some equilibrium above the buyout price incentivizing more taxable sales. What a nightmare that would be for shorts, but a well-deserved one!!! Does that make sense?