How can I close my shorted position on a de-listed stock?
How can I get money back from my broker on a shorted position, but the company is already de-listed? The broker told me to wait until the company listed again or wait 6 months before I can refund my money from them because of the position. I am charged $40.46 everyday for the borrowed stock, what should I do to close the position?
It sounds as though you are dealing with an unscrupulous broker who probably has committed other illegal acts. You should report your broker to FINRA.org and clearly state the exact details of your situation. You should not be paying anything to keep this short position and it is a simple matter to close out a short position in a delisted security. Most brokers credit their clients with additional funds for selling short rather than charging them except in very rare situations where the stocks are difficult to borrow (which would not apply in your case). I would seriously consider dealing with a more reputable and well-known broker in the future such as Fidelity, E*TRADE, Vanguard, InteractiveBrokers.com, TD Ameritrade, and similar nationwide or worldwide companies with multi-decade solid reputations.
This is a unique and interesting situation because if the company is delisted and/or bankrupt you don't have to pay back anyone because the shares are worthless. Therefore, I don't think you should be charged $40.46 everyday. Perhaps the broker made an error? If you wanted to get out of the position, you would have to buy back the same number of shares to repay the brokerage firm from whom you borrowed them. If you buy back the shares at a price lower than the price at which you originally sold them, you collect the difference - so short selling is a way to profit from a falling stock and in this case I hope you make a profit when the trade is resolved by your broker.