@Zbester, a good explanation of a strategy which does not...

@Zbester, a good explanation of a strategy which does not involved actual short selling.
This strategy worked spectacularily for EVN stock holders with their most recent SPP in January. The announced allocation of new shares was @ $3.80 for institutional purchasers, and the lower of either $3.80 or a 2.5% discount to the 5-day volume-weighted average price of shares traded on the ASX up to, and including, the revised SPP Closing Date of 30 January 2024. That turned out to be $3.0684 a share. on the closing date.
EVN traded at over $4 a share for a few days after the SPP announcement in December 2023, so any long shareholder who was entitled to participate could have sold up to 7,894 shares of their holding @ $4.00 a share ( the maximum allocation was $30,000 worth @ $3.80) and replaced them with no risk with the same number of SPP shares, pocketing a guaranteed profit of 20 cents a share, $1,578.80 (less selling commisions).
As it transpired as the actual discounted price of the SPP shares when issued was $3.0684 the profit per share sold was $0.9316 (or more if the sold price was over $4.00). That comes to $7,354 plus the value of an extra 1,880 "free" EVN shares worth $5,768 at the issued price. This was a no risk play, and if the share holder also applied for the 50% over allotment allowed then it added half as much again to those totals. Of course the ATO will want their pound of flesh out of the capital gain (if any) depending on the buy price of the sold shares and the status of those shares.
This said, I will not be selling any of my SPR shares. I intend to increase my holding by the maximum allowed at the issue bargain price of 58 cents.