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At a later date, Person B returns a share to them. And B pays them for the privilege of borrowing the share in the first place. Person B thinks that it will co
by jameshart 6y ago
At a later date, Person B returns a share to them. And B pays them for the privilege of borrowing the share in the first place.
Person B thinks that it will cost less to buy that share in the future than the money they make from selling the share today, which is why they asked A to lend them the share in the first place. They plan to buy a cheaper share and give that back to A.
A doesn’t care if they get back their original share, they just want to get a share back.
- stonemetal12 6y agoSo rather than borrowing it is more like renting?