question about payments of asterias(BAC) if short sold Geron
will the traders who have shorted Geron stock, when the Biotime warrants and Asterias stock spinoff is completed, owe the "cost" or actual warrants and stock of Asterias??? or am I thinking of this wrong....pretty sure a trader short a stock when it goes "ex-dividend" owes the sames amount of money that is paid out in the dividend......if this hold also for the Geron/Biotime "play" then won't the traders who are net SHORT Geron stock try to buy back into Geron before the transaction is completed?? I'll be watching the bi-monthly short interest news.....but maybe all the shares short on GERN are all hedged with the traders actually owning shares of Geron, so then they may "owe" the warrants and asterias stock but they will have been awarded same amount with the equal number of shares of GERN owned...???
They will have to deliver warrants and stock. How this is done is anyones guess as to how the brokerages handle this either by creating stock and recording new short positions in the accounts of those short Geron in Asterias or making the short purchase and deliver stock and warrants?