3 ms·
In the case you short a bank, why not borrow the money from the same bank?
by DeathArrow 4y ago
In the case you short a bank, why not borrow the money from the same bank?
- JumpCrisscross 4y ago> why not borrow the money from the same bank? That loan is the bank’s asset. It doesn’t go away when the bank collapses.
- DeathArrow 4y agoI know, but it would be funny.
- dctoedt 4y ago> In the case you short a bank, why not borrow the money from the same bank? To short a company's stock, you borrow the stock — although you do use money to pay interest on the value of the borrowed shares. [0] [0] https://www.investopedia.com/terms/s/shortselling.asp https://www.investopedia.com/terms/s/shortselling.asp
- wolfi1 4y agothere is also naked short selling, if I got it right you need to have the stocks within 3 days of the closing date of the short, seems to work most of the time, the only failure in recent times was when Porsche shorted Volkswagen and and had to pay enormous amounts when the shorts were due (they shorted too much of them and had to buy them at any price to close the deal)