3 ms·
Short sellers do not create stock. They are selling borrowed stocks. What am I missing.
by nightski 4y ago
Short sellers do not create stock. They are selling borrowed stocks. What am I missing.
- svnt 4y agoSynthetic longs.
- nly 4y agoPrivileged market participants can definitely lend out more stock then they hold, provided eveurnting is collateralised
- deleted 4y ago[deleted]
- lupire 4y agoThe person they borrowed it from also still owns the original share. The borrow creates a share, and the repayment destroys it. Fractional reserve stockholding.