What then happens is the Broker who FAILEd to deliver the stock then purchases the equaivalent amount of shares ON MARKET (and incurrs the cost).
EG. IF you are entitlted to 5,000 shares , then BUY 5,000 shares on market and transfer the shares over to your HIN. I have just received confirmation from the 4th Broker of this matter.
They have no choice, they FAILED to deliver on time!!!
Hense why this broker was soooo reluctant and delayed my request foer soo long. EVEN when they have my cheque for $5,000.
EG. Current price $1.34 x 5,000shares = $6,700 (loss to them of $1700).
Now they can either hold off and in their eyes, hope the SP drops so their incur a lesser loss. However, they need to have the trade settled and the stock on my HIN NO LATER than the date of allocation.
Bare in my mind, if the stock climbs, then their loss will be greater!
Hope you find this of assistance
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