4 ms·
How can you legitimately short a company for more than 100% of all shares in the market? The short has to be covered by a real share.
by dtech 6y ago
How can you legitimately short a company for more than 100% of all shares in the market? The short has to be covered by a real share.
- jeffbee 6y agoI borrow a share and I sell it and the buyer lends it to someone and they sell it. Now two borrowers owe two lenders the same share of stock. It's real straightforward when you think about it. Also has nothing to do with "naked shorting" which is when you sell the share before you are able to borrow it.