what are you trying to learn about specifically? there's a difference between "obfuscatory gobbeldy-gook" and jargon with technical definitions
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attempt at answering your question: it depends on if its a covered or naked short. if it's a covered short, I would assume you just give the borrowed shares back to the person you borrowed them from. if it's naked, i think you're belly up.
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what does a covered vs. naked short mean? that is surely something you can look up on wikipedia or wherever. i'll answer here for convenience though.
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Replying to @danlistensto
a covered short sale involves borrowing stock from an owner, then selling it immediately and waiting for the stock price to change. you have to return the same amount of stock to the owner you borrowed from so you will buy back that number of shares later.
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ok, so understanding normal non-naked short selling is probably as much as you actually care about. naked shorts are illegal and basically involve inherently unsound contracts or outright grifts/lies. don't worry about it really.
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Replying to @danlistensto
what happens to normal short sellers when a company goes private? they probably lose money because to cover their contract they have to buy shares from someone else, who will obviously not sell them for less than the offer price the company itself is buying its own shares back at
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so Elon will buy outstanding shares at $420, you have a short position and your creditor needs their shares back. you already sold the ones you borrowed at say, $418, can you buy those shares back for less than $421? no way. you lose.
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