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Shorting spin offs

UserPost

3:14 am
November 29, 2009


Jae Jun

Admin

posts 1336

1

We all know that spinoffs drop substantially after it starts trading on its own.

Looking at AOL, it is going to have one heck of a ride down.

So why not short it? Is it possible to short a company that has just been spun off?

If it is, a short term short sale could be very profitable.



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