Who lends all those shares the short sellers need to borrow? I know there is a broker in between. Who really owns those shares though?
People like me, who don't mind price fluctuations and only care about the fundamentals.
Hi, I'm OP and I've never heard of Google.
hijacking thread
if you go to lend off a broker and they dont have the shares will they buy it at current prices to let you short it if they think its better long
>>1090489
Are you a retail investor?
It's the same as with money in bank. People don't mind banks lending all their savings behind their backs as long as they can withdraw the amounts they usually need.
>>1090927
Intredasting
>>1090927
So, as long "the bank" gets what they loan out back, they don't really care....
But if the short seller isn't the one taking in the profit, who is getting the profit?
>>1090476
This guy >>1090489
Or me.
Or anyone else with long positions.
If there was a real crunch and we wanted to sell, the brokerage would call those shares back from the shorters. But in reality, that almost never happens, and we just collect any benefits we would if the shares weren't loaned out, until the shares get covered (i.e. the shorters pay us dividends, etc.)
>>1092913
>But if the short seller isn't the one taking in the profit, who is getting the profit?
Two sides of the same coin.
If the stock slumps, the shorter pockets the same amount the long holder lost. If it rises, the opposite.
Nobody. The broker is just recording a short sell.