ALL shorts, legal and illegal, must be covered. We
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Posted On: 06/07/2017 6:03:32 PM
ALL shorts, legal and illegal, must be covered. We know that there was huge short covering in the last month, especially on that 1.6 million share day. Nevertheless there's plenty left short out there.
Here's what you may not have considered:
Being forced to cover their shorts creates a TAXABLE EVENT for the short sellers. Some people were concerned that the shorts were going to try to force the company to zero, on the (in my opinion incorrect) theory that by leaving the short open forever, they would not have to pay taxes.
Well guess what fellas, JUNE 30 YOU GOTTA PAY YOUR ESTIMATED TAX.
So, they have to register their illegal profits, and then they're going to have to pull out some of their capital to pay the tax man.
Here's what you may not have considered:
Being forced to cover their shorts creates a TAXABLE EVENT for the short sellers. Some people were concerned that the shorts were going to try to force the company to zero, on the (in my opinion incorrect) theory that by leaving the short open forever, they would not have to pay taxes.
Well guess what fellas, JUNE 30 YOU GOTTA PAY YOUR ESTIMATED TAX.
So, they have to register their illegal profits, and then they're going to have to pull out some of their capital to pay the tax man.
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