Hi,
can some one give me an idea on what are the consequences on a short position if the company makes a rights issue. i understand that the price gets adjusted after that but seeing that you don't increase your quantity how does your position's profit/loss gets affected or is there no affect at all and how can it be put down to an example. Santos for example if one went 1000 shares short on 17.00 what's going to happen when market reopens after the 2 for 5 rights issue?
can some one give me an idea on what are the consequences on a short position if the company makes a rights issue. i understand that the price gets adjusted after that but seeing that you don't increase your quantity how does your position's profit/loss gets affected or is there no affect at all and how can it be put down to an example. Santos for example if one went 1000 shares short on 17.00 what's going to happen when market reopens after the 2 for 5 rights issue?
