Once a position is no longer able to be shorted it will be subject to a buy-in at any time. This is true for when the position can no longer be borrowed or it is moved to the OTC.
To prevent a buy-in and the additional broker assist fee you have the option to close the positions yourself. Since the position can be bought in at any time, once it no longer is sortable, there is not a time frame that can be given as to when this will occur. If you have any further questions please send a secure message or call us at 1-800-ETRADE 1, and thank you for choosing E*TRADE Financial.
That is not true as much as I would like to be agree with you. I contacted and spoke with a broker at TD Ameritrade this morning and asked the following question. "If I hold a short position in a stock that is about to be delisted do you need to cover my position before that occurs or can you just let it ride?" I further said "If a stock is trading on the nasdaq and is about to be delisted and trade on the OTC exchange do you need to cover your short before this happens or can you just let it ride?" (I reiterated my question so there wasn't any confusion whatsovever) The representative put me on hold and I waited a few minutes before she returned with the following answer. She said..."I spoke with the trading desk and they said you can let it ride" She repeated the same thing a few times just to make it clear. So once again if a stock is about to be delisted and move to another exchange you don't have to cover and can just let it ride. I was really hoping for the opposite answer so it was a bit disappointing but nevertheless it is what it is folks. I'm bullish in affy and can't wait for these shorts to shut the $uck up for good! Hopefully it will be any day now!
Sentiment: Strong Buy
Steve,I messaged and called Ameritrade,and messaged Etrade.
Ameritrade did not message back yet,when I called they told me the same thing Etrade said.
Etrade messaged me back,and what i posted is a copy of their message.
steve lemme explain please ! NOW We all know that there is a buyout and the company is not going to bankrupt, and they paid around 5 millions to lonza if they were going to bk no need to pay this , plus after the delist they dont want to appeal because as i said a buyout will happen ! so if they didnt cover now they may have to cover at 5$ 6$ 12$
Sentiment: Strong Buy