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I always thought that shorting was a disgusting practice, and wondered, “who buys a share, and lends it out so someone can manipulate it and lower its value, an
by colinng 6y ago
I always thought that shorting was a disgusting practice, and wondered, “who buys a share, and lends it out so someone can manipulate it and lower its value, and profit from it”?
It never occurred to me the majority of the “lending” did not actually happen.
- Ninn 6y agoJust to clarify, many portfolios are created in a way that lending allowed is ON by default, as such people may not be explicitly by the actual owner, but something that the given trading platform does using your underlying assets. This is similar to how the bank may lend out your current balance and not actually hold ALL of the money that its customers has in their accounts.
- Consultant32452 6y agoThis is one of the things going on with Robinhood right now. If you place a limit order, they cannot lend you share out from under you. WSB people are putting limit sells at very high numbers trying to keep scarcity but RH is cancelling those limit orders.
- rmah 6y agoIf you own stock and it's at a broker, mutual fund, in an ETF, a retirement fund... then you have probably lent out your shares to shorters.
- mola 6y agoThis is very upsetting. What's the point of ownership if not control?
- Dylan16807 6y agoUnder normal circumstances, their sale has a negligible impact on price. They're betting the stock goes down, and you're betting the stock goes up, but there's no need to be hostile. And they give you a nice interest payment for the trouble.