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> I must be missing something.. When you borrow shares to short, the person you are borrowing them from (usually a broker) specifies a fee. Your quote from th
by jpdoctor 15y ago
> I must be missing something..
When you borrow shares to short, the person you are borrowing them from (usually a broker) specifies a fee. Your quote from the article is saying that the fee is 30% (which is friggen huge, but is part of the manipulation that occurs with a hot IPO.)
- esrauch 15y agoHow could the fee be 99%? Doesn't that imply that anyone who takes the short is damn sure that the stock will be worth $0?
- pathdependent 15y ago99% is an the annualized rate. There have been a few stocks with > 100% borrow rate. It implies most of the shorters don't expect to hold for a year (or don't realize the costs.)