"Nothing ever happens" has been entirely obliterated
(media.greatawakening.win)
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Yup. That's the point. They will eventually have to buy shares at market price in order to meet their contracted obligations, and then buy them again from the same folks they sold them to, to deliver on their next contract.
I don't think they pay upfront either.
Shorting is borrowing stocks now to pay back later with the hopes that the value drops so you sell for a price and buy it back cheaper to return to whom you borrowed from.
The brokerage takes any/all assets on deposit, including cash and other stocks and bonds they hold, liquidating them to pay their obligation, and then sues them for any difference. If these clients are able to escape without bankruptcy, it is either due to them having enough money to buy the shares multiple times, or a new, unknown cheating method.
I've heard some hedge funds have already gone out of business!