What happens if you short a stock and it crashes?
 

Say you short a stock and trading is suspended or the company completely closes down... what happens?? Anyone know?

guess you're just "short out of luck"

If only there was some website you could search for this kind of information on.

like gfy?

I always put my most pressing questions against the brilliant minds of gofuckyourself
It's like a wonderland of greater knowledge

Two diferent things. If they are suspended, you have to wait. If they close then you get the full value difference of the price versus zero. I have had both happen. It can be easier to cover when they get close so that it does not hang in limbo.

Perhaps Charles Schwab told him to "Go fuck himself", so he came here? :winkwink:

From what I have been reading- you bit the tit right on the nipple with this post. It sounds like it becomes a big hell of a nightmare if the IRS fucks with you though.

Say you buy ABC stock @ $1.00 .. 100k shares

So then let's say it gets halted or suspended and the fiscal year ends

You don't actually realize any loss at all for now and maybe for a long time

Then the IRS says guess what stupid, you can't deduct your losses because you're hopelessly fucked since we're extremely powerful thieves who rape with impunity

So there you are with a 100k loss and you can't deduct it

I think it is kind of like when someone feeds a casino slots several grand, wins a piece of it back and then is made to pay taxes on the "winnings" that are actually a loss. Kind of like when the IRS says you had "income" on settled debts that were quadrupled and then "settled" for pretty much what they originally were or less.

Gambling losses are deductible up to the extent of your winnings.

Loss
 

If you get nothing you can always take a tax write-off. However I doubt you have any income to write against.

nevermind (edit post)... I guess you may have to wait to collect your money. But you should be able to collect no problem.

Sure, if you can prove your losses. You sure as the fuck can bet they'll be there with their hands out taking your winnings. Maybe even before you can have the money.

One of us has spent 6 figures on tax attorneys over the past 10 years while living in Las Vegas, but if you really want to bet on this, we can. I'll feel bad taking your money though.

Until I go spend it, then I'll feel better.