4 ms·
Only if A sells naked shorts, which is illegal. In ordinary circumstances A and C do not and cannot hold the same share. A only holds a claim against B to retur
by popcorncowboy 6y ago
Only if A sells naked shorts, which is illegal. In ordinary circumstances A and C do not and cannot hold the same share. A only holds a claim against B to return the same number of shares as were borrowed.
- thebean11 6y agoNo that's not the case. The scenario I described actually happens, and is not naked shorting. That's how GME got >100% short interest. For all you know, you could be the "A" in this situation. Many brokers will lend out your shares, but from your perspective you are just long.