Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

WOOLIES RIGHTS ISSUE

Reply
WES
Super Contributor
If you short Woolies before the rights issue, what happens with the rights issue ?
0 Kudos
4 REPLIES 4
Preston
Super Contributor
My understanding is that when you short a share, you are effectively selling a share that you do not own. So, the right issue, is a legal right, will belong to the actual shareholder. (i stand corrected).
0 Kudos
SimonPB
Valued Contributor
if you are short on LDT for the NPLs you would effectively than also be short the NPLs
0 Kudos
WES
Super Contributor
So basically it means that number of underlying shares on my CFD that I SOLD when I entered the short will increase as I have to "sell" more under lying shares to accommodate the rights issue ?
0 Kudos
SimonPB
Valued Contributor
in a sense yes, but not sure how OST manages it .. could just add some npls you short of, but than that does mean you need to deliver shares if you do not but back the npls .. but they could just adjust you price
0 Kudos