What happens if you sell a stock short just before it tanks and trading in it is suspended?

Question

Are you "cornered?" Does the clock stop ticking until trading in the stock is resumed? Or is it Force Majeure and you just walk away with your profit?

Answer 1

You have to arrange to purchase the stock to effect the sales or you would be slapped a huge penalty.

Answer 2

if you sell it, its sold. they arent able to reverse it.

if however, you had a trade pending and it wasnt sold yet then it would be frozen with trading. in this case you would be stuck with your stock trading was resumed.

im not quite sure what you mean by the second bit. do you want to acquire the stock again?

Answer 3

If a stock tanks or trading is suspended, your account records still have a "short" stock position, your brokerage firm at the same time shows that they owe the stock to the lending broker.

If the lender is willing to "write-off" his receivable from your brokerage firm, you account could become flat, and you walk with the profits.

HOWEVER, is the lender won't write it off, or presses for the stock (for whatever reason) you may be forced to carry the open short.  

The lending broker is they want the stock, your brokerage firm will tell them to buy them in, if lthe can.  

At some point in time the lender will agree to write off the receivable, at that point your short will be removed, you keep the profits.   In the mean time, there is almost no cost in carrying the short.