Dear Complaints Board,
I would like clarification as to where my money went as a short share holder of HSBC American ADR during the rights issue.
My short right were held through expiration and as such I was was held liable for the difference. First, I was under the impression a cash delivery would take place because they were held through expiration,
instead I was held liable for the cash and put 500 short shares of HBC stock.
My broker told me as a short share holder through this right offering that I would not be held liable for the rights, but I was. It cost me dearly.
I do not know what the short interest was on the rights issue date, but I gather that this is one primary funding source for the discounted shares that were offered for share holders of HSBC. Surely the short share interest had to be of significant size during the rights issue, however it did not seem of pertinent at the time and so I am not sure what it was.