# Short selling a delisted stock

**URL:** <https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555>\
**Category:** Factual Questions\
**Created:** [April 25, 2007, 4:23am UTC](https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555 "2007-04-25T04:23:35Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Projammer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/projammer/32/559_2.png) [@Projammer](https://boards.straightdope.com/u/Projammer)\
**Post date:** [April 25, 2007, 4:23am UTC](https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555/1 "2007-04-25T04:23:35Z")

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An earlier question about short sells reminded me there was a question I’d wanted to ask someone knowledgeable.

And where am I going to find a more knowledgeable bunch of people with nothing better to do than answer my question!!?

What if I had sold short a pile of a major stock that suddenly gets delisted? aka, Enron?

One week, it’s a major, respected stock that for whatever reason I think is going to take a dip in the next few days. I “sell” 200 shares at 90, put 18000 in the bank to sit on a week anticipating to buy them next week at 80 leaving me with 2000 minus fees. Not too bad for a week of day trading.

Then the scandal breaks midweek and the price plummets so I just sit on it watching the price go down and down finally hitting 30 cents before being delisted.

Whoops! Can’t buy a delisted stock!

Did I just make 18 grand?

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**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\
**Post date:** [April 25, 2007, 4:54am UTC](https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555/2 "2007-04-25T04:54:34Z")

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What makes you think you can’t buy a delisted stock?

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**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\
**Post date:** [April 25, 2007, 1:12pm UTC](https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555/3 "2007-04-25T13:12:08Z")

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It would be harder to find buyers, but since you’re guaranteed a big profit, you can wait. Also, in this situation, the brokerage is probably stuck with shares.

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**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\
**Post date:** [April 25, 2007, 2:00pm UTC](https://boards.straightdope.com/t/short-selling-a-delisted-stock/401555/4 "2007-04-25T14:00:00Z")

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Congratulations on the 18 grand, by the way.
