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> Should the need arise for Craig and Mark to return the stock they borrowed (someone calls in their shorts), they will probably need to pay a lot to convince t
by defen 8y ago
> Should the need arise for Craig and Mark to return the stock they borrowed (someone calls in their shorts), they will probably need to pay a lot to convince the people who own the actual stock to sell to them, especially if the owners are aware of the macro situation.
In your scenario there are only 100 shares available! If Craig and Mark get margin called, how are Sally and Bob each going to end up with 100 shares?
- sokoloff 8y agoThe price will rise until Bob or Sally is willing to sell their shares, meaning they don't end up with shares; they end up with cash. There exists a price for which Sally or Bob are willing to sell their shares. If Craig needs to offer $100K per share, Bob or Sally is likely to take it.