Could the TSLA stock split be causing a naked short squeeze?
Introduction A week and a half ago, Tesla announced a five-for-one stock split , and the stock has been on an absolute tear since then: Yahoo - TSLA Chart - 3/8 to 22/8 Ever since then, there have been discussions on the TMC Investor Forum about how various parties are affected by the stock split. What happens to long positions, derivative positions, and normal short positions is relatively straight forward, and it didn't take long for the consensus to reflect this. However, a consensus has still not been reached on how one particular position is affected by the stock split: a naked short position. I've done quite a bit of research on the inner workings of the stock market since then, and I believe I can shed a lot of light on precisely how naked shorts work, so that people can have a more informed opinion on the subject. I will present all of this research in this short blog post. The inner workings of the stock market Although the girl's Indian accent is rather hard to u...
