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When you lend someone a stock you borrowed, it’s considered an additional ‘stock shorted’
by mmmateo 6y ago
When you lend someone a stock you borrowed, it’s considered an additional ‘stock shorted’
- nico_h 6y agoAnd the entity that bought it from the short seller can lend it to someone else, leading to two short shares, etc... Also, there is a difference between 100% of the stock and 100% of the float. Because in theory the institutions holding could alter their positions or lend their shares as well.
- deleted 6y ago[deleted]
- imtringued 6y ago>Also, there is a difference between 100% of the stock and 100% of the float. With GME both of these are abnormally high. Either of them is enough to explain the short squeeze.
- hutzlibu 6y agoHow is it called, when the person you lend your stock to, lend it to someone else, who lends it again to you and you lend it to the first person again? Madness? (Anyway, my actual knowledge of the stock market is limited, but is my scenario a realistic one?)
- thargor 6y agoNo. Shorting is selling a stock you borrowed. Multiple borrows does not make a short.