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Even if you think a stock should be worthless, it may make sense to hold it, even if eventually it will become worthless. The sale value may be zero, but as lon
by freeone3000 6y ago
Even if you think a stock should be worthless, it may make sense to hold it, even if eventually it will become worthless. The sale value may be zero, but as long as people are making shorts, the use value is the fee you can charge for lending them out. (And since it has a use value to make more profit, the sale value isn't exactly zero, but is more related to its use value than anything about the underlying product being securitized.)
Being able to sell it on is one exit from this gamble; but also, simply having accrued more lending fees (over time) than the share cost to acquire. Mostly, it's some combination of the two.