3 ms·
Not if their short positions expire before the price falls.
by dodobirdlord 6y ago
Not if their short positions expire before the price falls.
- baq 6y agoborrows don't expire, puts don't have infinite loss potential.
- bluGill 6y agoYou are mostly correct, but there is one exception. When you own a stock your broker keeps them for you, and can loan them out (for money - this is why brokers don't charge to hold your stocks for you). There are various ways to buy stocks and then get them transformed into a form where they cannot be shorted. If enough people do this the brokers will be forced to get those shorted shares back, which means they can buy your shares back on the market and leave you with the bill. The above has happened, but it is rare. Not letting your broker deal with holding the stock for you is a big hassle.