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Subject:  what happens when a short seller goes broke? Date:  10/1/2008  1:15 AM
Author:  fthat Number:  2006 of 2244

With all the talking about short selling the last few weeks I wonder what happens to shorted or even naked shorted positions when the short seller goes broke.

Who looses when the short seller does not have enough money to buy back the stock sold short?

Does the lender not get his shares back?
Do the buyers shares disappear?

Any educated guesses?

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