@StockSenseFrank a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security. This “locate” must be made and documented prior to effecting the short sale
@MMATNEWS Private companies do not have the same tools and leverage as publicly traded companies to force short sellers to close their positions, and it may be difficult or impossible for a private company to eliminate short interest entirely.
@Broncho24 @MMATNEWS Its like people don't read! "Excludes the number of shares issuable upon exercise of stock options issuable to our directors and executive officers" this is a short position on itself!
@MMATNEWS There are a few corporate actions that can compel short positions to be closed or extinguished. Here are some examples: Stock Buybacks, Dividend Payments, Mergers and Acquisitions,Bankruptcy
@Saul_Goudaman @MMATNEWS It's important to note that short interest in private companies is generally less transparent than in publicly traded companies, as there is no centralized exchange or reporting mechanism. As a result, it can be difficult to track short interest levels in private companies
@Saul_Goudaman @MMATNEWS interest can arise if a counterparty sells a derivative contract that requires them to deliver shares at a future date, and they do not own the shares.
@Saul_Goudaman @MMATNEWS Derivatives contracts: Private companies may enter into derivatives contracts, such as options or futures, with financial institutions or other counterparties. These contracts can be used to hedge against potential losses or to speculate on the future value of the company. Short
@Saul_Goudaman @MMATNEWS Secondary market trading: In some cases, shares of private companies may be traded on secondary markets, such as SharesPost or EquityZen. These markets allow investors to buy and sell shares of private companies before they go public. Short sellers may be able to borrow and sell
@Saul_Goudaman @MMATNEWS Equity-based crowdfunding: Some private companies raise capital through equity-based crowdfunding platforms. In this scenario, investors may be able to buy and sell shares in the company, creating the possibility for short interest.
@Saul_Goudaman @MMATNEWS Private company shares held by institutional investors: If a private company has issued shares to institutional investors, those investors may lend those shares to short sellers in exchange for a fee. This is similar to how short selling works in the public markets.
@Saul_Goudaman @MMATNEWS Short interest in a private company can arise in a few ways, although it is relatively rare compared to publicly traded companies. Here are a few scenarios where a private company might have short interest: