So its approximately 3 weeks to go, and by that time the announcement could possibly also include the bulk sampling if we are lucky.
With naked short selling it would be impossible to cover ones tracks so what happens to those people.
With covered short selling they have borrowed someones shares technically but in this case that persons shares are actually sold as it is impossible to replace them in the time frame. This bring up a concept that I have mentioned previously and that is the pretend game here becomes reality. From the ATO's perspective those shares are sold in reality, game set and match. This brings about a tax liability to the person who loaned the shares, absolute fact as the only way to cover is for the loaned shares to be sold. Does this set a precedent for all shorted situations. A very interesting hypothetical thought. Reality has a bad habit of catching up with people.
If they have to cover within three days it then becomes an impossible task in both the loaned situation and the naked short selling exercise.
Do the brokers go hunting within the life assurance people who have large numbers of shares for off market transactions or is that forbidden.
The person who bought the naked short shares what happens when the broker cant supply script to them. Is this considered theft at law and is it punishable by imprisonment.
The contract for loaning shares, does it allow for a situation like the one we have sailed into.
Opinions greatly appreciated as we have three weeks to twiddle our thumbs and this could be an interesting, amusing time wasting exercise.
CDU Price at posting:
$3.09 Sentiment: Buy Disclosure: Held
